FAQ: Payment Protection Insurance FAQ's
Average Payment Protection Insurance Periods
Any individual who took out any form of credit agreement over the past ten years will have no doubt heard about the situation regarding mis-sold PPI. This situation saw a number of applicants sold the policy incorrectly, having been misinformed or left in the dark over the policy and what it offered.
The problem was first identified when the Citizen’s Advice Bureau lodged a complaint in 2006. On the back of this, the Office of Fair Trading and Financial Services Authority launched an investigation into the selling of PPI in the same year, with the findings confirming people’s worst fears.
The number of people who were mis-sold this policy remains unknown, with more than 1.5million claims being lodged since 2005. The first ten months of 2011 saw more than £1 billion paid to those mis-sold PPI in claim compensation and there are still many more unclaimed cases expected to exist.
Perhaps the most shocking thing about this situation is that the mis-selling of PPI was so widespread that many people are eligible for multiple claims. A large proportion of claimants would have taken more than one loan or financial product over the affected time period, meaning that PPI could have been wrongly added to more than one product.
For this reason, there are no limits on the amount of PPI claims that a person can make – helping to ensure they are given the best chance of recouping their losses.
The number of claims and complaints which have been lodged has therefore been vast and the Financial Ombudsman Service (FOS) expects 2012 to see even more cases come to light, with the service personally anticipating that they will receive 285,000 new cases.
This vast number of claims has caused some individuals to worry about the length of time it could take for their claim to be resolved, fearing that the process will be elongated to deter people from making claims.
The exact length of time taken for a case to be resolved will be dependant on numerous factors Cases which are referred to the FOS will take longer than those which are not.
Each claim is treated individually and that means that the length of time it takes will vary, even for those making multiple claims.
Of course, claim lengths cannot be guaranteed and individuals should remember they are entitled to claim, regardless of how long it takes.