PPI Claim Deadline – The clock is ticking

The countdown clock is ticking and time is running out for tens of thousands of potential PPI claimants to beat the claims deadline of August 29th 2019.

Experts believe that though £31.9 billion has already been paid out for mis-sold PPI there are still billions more which could be paid out to new claimants who have not yet started the process.


No-one knows how many PPI policies have been mis-sold in the last three decades, but the Financial Conduct Authority (FCA) says that 64 million policies have been sold overall and it is estimated that only 20 million claims – successful and unsuccessful have been made.

The banks certainly believe there are many more claims to be made as they regularly add to the billions of pounds they already have in their PPI contingency funds.


In 2018 Lloyds have added £1.15 billion to bring its total set aside to £19.225 billion and in its annual report admitted: “The Group estimates that it has sold approximately 16 million PPI policies since 2000. These include policies that were not mis-sold and those that have been successfully claimed upon.

“Since the commencement of the PPI redress programme in 2011 the Group estimates that it has contacted, settled or provided for approximately 53 per cent of the policies sold since 2000.”

13,000 new PPI claims a week

The bank is currently receiving an average of 13,000 new PPI claims a week and believes that the money it has already set aside may not be enough to pay all successful claims before next year’s deadline.

Its statement says: “The total amount provided for PPI represents the Group’s best estimate of the likely future cost. However, a number of risks and uncertainties remain including with respect to future volumes. The cost could differ from the Group’s estimates and the assumptions underpinning them, and could result in a further provision being required.”


In its annual figures statement Barclays said PPI claims against them had soared by 16% in 2017. They were 300,000 up on the previous year and the bank had already paid £7.6 billion in compensation.

Its future analysis shows it expects to receive another 570,000 claims of which it expects to uphold 87%. However, it expects the average payout per claim to drop slightly from £2,036 to £1,989.

Announcing a £400 million increase to its PPI provision in April it said: “Management views its current PPI provision as appropriate, but will continue to closely monitor complaint trends and the associated provision adequacy.”

How did the numbers grow so large?

PPI was mis-sold on an industrial scale between the 1980s and 2010. It was packaged alongside all kinds of credit agreements from loans, credit cards and mortgages to car finance, catalogue shopping, overdrafts and all kinds of other credit agreements.

It became so popular because it was said to be ‘insanely profitable’ for anyone who sold it.

Financial journalist Geoff Ho said: “Industry sources say that even taking into account the billions they will have paid out in redress, the insurance was so insanely profitable that the banks will still come out ahead by the time next year’s August 29 deadline for filing compensation claims comes round.”

Protection racket

Research carried out for what Citizens Advice called ‘a £5 billion protection racket’ showed only 15% of people making a claim on PPI were successful.

The Guardian newspaper said: “The 20 million PPI policies in force are believed to be hugely profitable for the banks.

Last year the Guardian revealed that Barclays made as much as 20% of all its profits from PPI, with £7 in every £10 spent on PPI going straight on to the bank’s bottom line.”


The FCA agreed to a claims deadline following intense lobbying by the British banking industry.

In a statement it said: “The FCA now considers there is a case for intervening further in PPI and that introducing a deadline and running a communications campaign would:

  • Prompt many customers who want to complain, but have not yet done so, into action, resulting in them potentially getting redress sooner and giving some of them the opportunity to pay off costly debt.
  • Bring the PPI issue to an orderly conclusion, reducing the uncertainty for firms about long-term PPI liabilities and helping rebuild public trust in the retail financial sector.”

A line in the sand

Bringing it to ‘an orderly conclusion’ means drawing a line in the sand and anyone who has not made a claim before the deadline rolls around will lose the chance to do so forever.

Research by consumer champion Which? has shown that 42% of those eligible to claim haven’t done so because they no longer have any of the paperwork for their agreements.

A further 28% have not claimed because they said it was just too much hassle.

Rightfully yours

Failing to make a claim will mean the banks have won and will have kept money which was rightfully yours.

Making a claim is simple and a policy mis-sold to you could be worth thousands in compensation. The average payout quoted in the media is £2,700.

Some people get less, but others end up with payouts in the tens of thousands.

If you think you may have been mis-sold don’t lose out and make your claim before the deadline catches you out.