With more than £10billion still unclaimed in PPI refunds, Brits are being urged to get clued up on their rights before the August 29 deadline kicks in.
A report by consumer group Which? found a fifth of 1,000 people polled have made a successful claim - with many others yet to file for refunds. The average payout is currently at around £1,700.
It said two thirds of the population have never submitted a claim for mis-sold PPI and with many of them still potentially eligible, the charity is urging people to take action before 29 August.
The research also found confusion around PPI claims is still common.
Nine in ten people thought they had to complete all of the forms sent by the bank or provider to file an initial claim, a task that could be considered a put-off. In reality, this is not the case.
While banks may send long forms requesting lots of information, claimants do not need to fill out the whole form for their claim to be progressed.
When asked if it is possible to claim mis-sold PPI on behalf of a deceased relative, more than eight in ten people did not know it would not be possible. Only one in six correctly replied that such a claim was possible.
A further eight in ten did not know or thought it was true that banks will automatically check all products if a claim for PPI compensation is made.
When Which? asked members of the public whether they are able to claim back the tax on successful PPI claims, three quarters of people responded either with ‘don’t know’ or ‘false’ and only a quarter were aware that successful claimants may be entitled to do so.
Those who have claimed through Which? have seen an average payout of £2,500 so people could be missing out on substantial sums if they don’t know they can claim back the tax on successful claims.
The PPI deadline is on August 29 - after which point you'll no longer be able to submit a claim.
Eleanor Snow, at Which? said: "The deadline for claims is rapidly approaching but our research shows that there is still a lot of confusion about the process that might be putting people off.
"Banks have set aside billions of pounds for potential compensation so we urge anyone who thinks they might have been mis-sold PPI to make a general claim, which can be done for free using an online tool. Even if you have previously had a claim declined it’s still worth asking your bank to check all of your products as you may still be owed compensation."
Who can reclaim for a deceased relative?
If there's a will, it's the executor who'll need to show the bank the Grant of Probate
If there's no will, it's the administrator who'll need to show the Letters of Administration
For small estates, it's the next of kin who needs to show proof of their relationship to the deceased and prove it was a small estate.
How do I make a claim?
In most cases, the bank will ask you to put in a PPI reclaim for your deceased relative in the normal way.
Then as part of the process, you'll be asked for proof that you are entitled to make the claim.
If you're unsure as to whether they had PPI, you can contact their former bank directly to check – it will have to reply within eight weeks. If you hear nothing back, you can escalate it to the Financial Ombudsman instead.
If someone left a will, a bank or provider may ask to see a copy of the "grant of probate" – and you will probably have to get the consent of all the representatives to look into the complaint.
In cases where there's no will, the bank or provider may ask for a copy of the "grant of letters of administration".
The Financial Conduct Authority (FCA) says some providers have specialist bereavement support, so if you are not clear about the process you should contact the bank or other provider.
You can also call the FCA's helpline on 0800 101 8800 if you need help with your claim.
Have you won a large sum from your bank - or had a nightmare claiming PPI?
Get in touch: emma.munbodh@mirror.co.uk
