More than 150,000 consumers are set to discover that they are owed thousands in payment protection insurance (PPI) following new rules from the Financial Conduct Authority (FCA). The new round of PPI payouts will see millions returned to mis-selling victims.
The financial regulator has announced it will push forward with new rules. The rules aim to clarify any uncertainty in PPI rulings that has persisted since the Plevin ruling three years ago.
The FCA rules state that lenders must assess all disclosures since 2007. This means that banks will be forced to contact 150,000 customers to let them know they are owed PPI payouts.
With an estimated cost of these new claims being £1,100, this could mean that banks will pay out more than £165 million to consumers. They will also have to pay £4 million in additional administration fees. However, the average PPI payout so far has been £2,750, so the total may be even higher than expected.
Deadline to claim for PPI payouts
The rules follow the FCA’s ongoing campaign, urging people to claim before the PPI deadline of August 2019. More than £32 billion has been paid out so far and billions more may be claimed in the next 9 months.
Consumers have not claimed just on the basis that they were mis-sold PPI, but also because of the unfair treatment they received from brokers and lenders.
Read more about why we could help you get compensation, even if you’ve already had a claim rejected.
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