The claimants left waiting nearly half a year for an answer on PPI claims, as a third experience delays from banks, figures reveal
- 10 people have been waiting at least 17 weeks for their PPI final responses
- These responses say whether or not their claim has been successful
- One person received the final response cover sheet but not the actual response
- A further 10 have been waiting since last July to find out if they can even claim – and one expert tells This is Money 30% of claims might be affected
Some consumers sold Payment Protection Insurance have been waiting for more than 20 weeks to find out if they were mis-sold and can be compensated, according to figures seen exclusively by This is Money.
Despite submitting claims as far back as last July, 10 people have been waiting at least 17 weeks for their final responses, which explain whether or not their complaints have been successful and whether they are due to be compensated.
This is more than double the eight weeks the Financial Conduct Authority says consumers should receive a response by, while one expert said that ‘evidence suggests that around 30 per cent of PPI claims face delays from the banks’.
Running out of time: Data seen by This is Money has shown some consumers have been waiting since 2017 to find out if they can claim – the deadline to make a PPI claim is 29 August
The data, provided to This is Money by claims management firm Etico, does not name the lenders involved for legal reasons, but three in five of these cases involve the same financial services firm.
It also reveals that 10 further consumers have been waiting nearly half a year to find out whether or not they had even been sold PPI, before they can begin the complaints procedure.
Seven of these cases involve the same bank, and Etico’s data states that it has not received a response or even an acknowledgment in these 10 cases, even following a follow-up.
The FCA again states that firms should respond within eight weeks, while all 10 consumers submitted requests in July last year.
There are less than 29 weeks until the FCA’s PPI deadline on 29 August 2019, but that deadline refers to the submission of a complaint, not the start of the process.
WHY THIS IS MONEY FOUGHT TO BEAT PPI MIS-SELLING
This is Money launched its campaign to stamp out PPI mis-selling in 2006, a time when policies were still widely being wrongly pushed despite major concerns about them.
We had reported repeated incidents of mis-selling of PPI in the years running up to this and urged the industry to get its house in order.
Ultimately, we decided it was time to campaign for customers to fight back, by making it easier for them to reclaim mis-sold PPI.
Since then banks, building societies and other financial institutions have been found to have mis-sold PPI on a widespread scale and they have been ordered to pay customers back.
This is Money’s campaign, along with those of our peers, such as Which? and MoneySavingExpert, empowered ripped-off customers to fight back.
This was instrumental in finally ending widespread mis-selling.
That means the consumers who are still yet to receive a response from lenders are at a disadvantage, and if lenders continue to drag their heels consumers could potentially miss out on compensation.
The South Yorkshire-based firm added that some banks were also only issuing their final response letters 16 weeks after claims were made.
According to the FCA, £2.82billion was paid out in compensation in the first 11 months of 2018, with £415.8million paid out last January alone. In total, £33.6billion has been paid out in compensation since January 2011.
The FCA says the most commonly sold types of PPI were single premium policies on unsecured loans, which made up around 48 per cent of all PPI policies, followed by credit card PPI, which made up 36 per cent.
This is Money has been campaigning against PPI mis-selling for 13 years, and advises that you reclaim any lost money yourself.
We have a whole article dedicated to helping you reclaim any money you lost through mis-sold PPI, that includes a template letter to send off to the company that you believe mis-sold you.
In six cases involving those who were waiting to find out whether their claim had been successful, customers received holding letters in either September, October or November last year, but are still yet to receive their final responses.
One bank said that it had issued its final response last September, but Etico said it was yet to receive it, while another issued the cover letter of the final response but not the response itself.
Etico’s general manager, Nigel Wright, said: ‘With the FCA’s August 29 deadline looming, we have seen a slowdown in processing both initial PPI information requests and claims. Evidence suggests that around 30 per cent of claims face delays from the banks.
‘Most consumers don’t realise that certain information needs to be provided by the lender before a PPI claim can be submitted.
‘With just 28 weeks left before the FCA’s deadline is reached, delays in providing this information mean that claims cannot yet be submitted.
‘It is essential that consumers are made aware that the delays being experienced with some banks could mean that they miss out on their claims.
‘Consumers who have been putting off looking into whether they had been mis-sold PPI need to act now, if they don’t it’s possible they’ll miss the boat and will not get another chance to secure legitimate payouts if they are found to be due.’
The FCA did not respond to a request for comment.