- Video report by ITV News Consumer Editor Chris Choi
Customers have just a few hours left to submit their applications to receive money back from mis-sold payment protection insurance (PPI).
Around 64 million PPI policies are thought to have been sold in the UK, mostly between 1990 and 2010, but some date as far back as the 1970s.
PPI was designed to cover repayments in certain circumstances where people could not meet the costs themselves, for example if they were made redundant or could not work due to an accident, illness or death.
Banks have set aside billions to pay for PPI refunds and compensation.
So far, more than £35.7bn has been repaid to customers since January 2011.
The deadline to start a claim to get back possible mis-sold PPI closes at 11.59pm August 29, 2019. As long as you start the process before then, you should be able to proceed with it in the days ahead.
Phone and in-branch claims are likely to end before 11.59pm - it's likely to be online only after office hours.
Any money that is not claimed back will be reinvested in the banks who are offering refunds.
Here's what you need to know about PPI, answered by consumers' association Which?
- How do I know if I am entitled to PPI compensation?
If you purchased any kind of credit product, such as a credit card, loan or mortgage up until 2006, you may have been mis-sold PPI.
Some mis-selling may have taken place after this too.
Most people don’t know if they were mis-sold PPI or not, and there is no limit on how far back you can claim PPI – so if you think there might be a chance you are owed compensation, you should look into making a claim.
Which? has a mis-selling checklist you can use to identify whether you may have been mis-sold PPI.
- How do I go about claiming compensation?
A lot of companies offer to make a PPI claim on your behalf, but these claims management firms will take a large chunk of your compensation for doing so – up to 24%.
The easiest way to claim compensation and ensure you keep all of the money is to make a claim direct to your provider.
Which? has a free, easy-to-use tool which you can use to start your claim. It takes five minutes to fill out the form, which is then sent directly to your provider.
If you're successful you'll keep 100% of your payout.
Claims-management companies, also sometimes called "claim handlers", sprung up fast in the wake of the PPI mis-selling scandal.
They offer to handle your PPI complaint in exchange for a fee.
Which? strongly advises that you consider your options carefully before deciding to use a claims management company.
It doesn’t cost anything to make a PPI claim direct to your provider, and you’ll keep 100% of your compensation.
You can use our free PPI tool and template letters to do this.
In 2018, the average compensation payout was £2,500, although one person received more than £18,000.
- Can I claim compensation for deceased relatives?
In short, yes. Generally, if there is a will and a grant of probate has been obtained, then the executors are authorised by law to bring a PPI complaint. All the executors would need to sign the relevant forms.
If there is no will, a grant of letters of administration is required, and the administrators of the grant become the personal representatives and are authorised by law to bring the complaint on behalf of the estate.
- When is the deadline for claiming compensation?
The deadline for making a PPI claim is 11.59pm on August 29, 2019.
If you want to make a PPI claim, it must be received by the firm you’re complaining to on or before this date.
- If I miss the deadline is that my opportunity gone forever?
You can still apply after August 29, but only if you’ve experienced exceptional circumstances.
Exceptional circumstances claims will be assessed on a case-by-case basis, so make sure you include as much information as possible when you make your claim.
To guarantee your claim gets considered, make sure you apply before the deadline.