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With effect from 29th August 2017 the Financial Service Complaints Authority (FCA) introduced some new guidance and rules in relation to PPI complaints. This marks the countdown for what the FCA say is going to be the cut-off point for making a PPI claim. Time will tell as to whether this date will be observed, you may already have seen the media publicity which is advertising this fact. (The Arnold Schwarzenegger Advert on the Television). It would seem that the FCA is committed to ensuring that they send the message out loud and clear that 29th August 2019 will be the final deadline for making a PPI claim. The thrust of the advertising is to prompt consumers into checking whether they might be affected by PPI misselling.

There is the unknown factor of exactly how many claims are yet to be made, there may well be a last-minute rush to lodge claims before the deadline arrives.

The timing of these complaints will be important because there are also time limits which apply here above and beyond the looming deadline. A last-minute claim is therefore not advisable. Bearing in mind there is likely to be a significant increase in demand for these type of claims, the earlier the better would ensure that any claim is processed and avoids being delayed by the high volume of applications.

When the FCA published their 2017 review it was said that there would be a 2-year deadline in which to make any outstanding mis-sold PPI claims.

In November 2014 The Supreme Court handed down a judgement in the case of Plevin v Paragon Personal Finance Ltd that a failure to disclose to a client a large commission payment on a single premium PPI policy made the relationship between a lender and the borrower unfair under section 140A of the Consumer Credit Act 1974. What must also be considered is the type of credit which the PPI was sold with, when it was taken out and when it came to an end.

Interestingly the FCA report in the financial year ending 2016/2017 with around 170,000 PPI complaints of which 140,000 of them were affected by the judgement in Plevin, so this was a significant proportion of affected claims.

The FCA implemented strict rules in the wake of the Plevin ruling, stating that if commission and profit share made up over half the cost of a PPI policy, then the consumer should be refunded the difference.

Another aspect which of course needs to be considered is whether any previously rejected claims need to be revisited in the light of the Plevin ruling. The FCA has estimated there could be around 1.2 million consumers affected.

What is abundantly clear is that there is a strong likelihood is that there will be a last-minute rush with consumers leaving their complaint until the last minute. This means that PPI claims will still be being processed beyond the 2019 deadline.

If you think you may be entitled to PPI and would like to know your best options, get in touch with a member of our team today. 01924 675039 info@sarahwaddingtonsolicitors.co.uk.

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Widbury Barns, Widbury Hill, Ware, Hertfordshire, SG12 7QE