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13 Feb 20

20% of FSCS Claims relate to PPI

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The Financial Services Compensation Scheme (FSCS) have confirmed that 20% of the complaints received by their service relate to Payment Protection Insurance (PPI) and that they experienced an increase in complaints leading up to the PPI Complaint deadline on 29 August 2019i.

The FSCS is an independent body which was set up to protect your money in the instance that a Financial Organisation goes out of business. This will generally be because the Financial Organisation has stopped trading and has insufficient funds, or is in insolvencyii.

The deadline for PPI Claims does not apply to the FSCS, this is because the deadline only applies to Lenders that are still tradingiii.

Some of the Lenders who are covered by the FSCS, include:

  • Welcome Financial Servicesiv
  • Paragon Financial Servicesv
  • Bright Financevi

The FSCS also cover sales made by a Broker, where the Broker is no longer trading and is in ‘default’ with the FSCS. A business in ‘default’ means that they are no longer trading and the FSCS have determined that they are, or are likely to be, unable to pay any Claims made against it.

Could I have a FSCS PPI Claim?
If a Lender or Broker sold you a PPI policy, and they are declared in ‘default’ by the FSCS, you may have a Claim. The FSCS can typically award up to 90% of the total Claim value and the process usually takes between three to six months.

You must have been sold your PPI policy on or after 14 January 2005.

If you think you may have a FSCS PPI Claim, please get in touch as we can help. We will investigate the sale of your PPI policy and let you know if you will have a reasonable chance of success. We will then prepare the FSCS PPI Claim on your behalf, keeping you updated every step of the way.

You can, of course, refer your Claim to the FSCS yourself for free.

Sources:

  1. https://www.fscs.org.uk/globalassets/publications/fscs-plan-and-budget-2020-final.pdf pg. 4 and pg. 13
  2. http://www.fscs.org.uk/what-we-cover/questions-and-answers/
  3. https://www.fscs.org.uk/what-we-cover/ppi/
  4. https://www.fscs.org.uk/failed-firms/welcome/
  5. https://www.fscs.org.uk/failed-firms/static/?id=MTQ1MTMy
  6. https://www.fscs.org.uk/failed-firms/bright/