PPI mythbusters: Which? reveals worrying gaps in consumer knowledge that might be putting them off making a claim
With just two months left to submit a claim for mis-sold PPI and with many people still potentially eligible to do so, Which? research has found that people are still unclear about the process, with the majority not knowing the correct answer to some important questions about PPI.
The Which? survey of more than 2,000 people found one in five people (19%) has made one or more successful PPI claims while one in eight (12%) has had at least one claim rejected.
It also found two thirds (65%) of the population have never submitted a claim for mis-sold PPI and with many of them still potentially eligible, the consumer champion is urging them to take action before the deadline.
The research showed confusion around PPI claims is still common. Almost nine in ten people (86%) did not know or were mistaken about the fact that it is not necessary to complete all of the forms sent by the bank or provider in response to an initial claim, a task that could be off-putting for some claimants. 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 (83%) did not know or believed it was false that you could do this. Only one in six (17%) correctly replied that such a claim was possible.
Two thirds of (67%) people were not aware that you can still make a claim if a bank or provider has ceased trading, with only one third of people (33%) correctly saying it was false that you cannot do this.
Eight in ten (81%) people did not know or thought it was true that banks will automatically check all products if a claim for PPI compensation is made. The free Which? PPI tool will ask the bank or provider to check all products as default to ensure people do not miss out on compensation for products they haven’t specifically enquired about.
When Which? asked members of the public whether they are able to claim back the tax on successful PPI claims, three quarters of people (73%) responded either with ‘don’t know’ or ‘false’ and only a quarter (27%) were aware that successful claimants may be entitled to do so.
Those who have used the free Which? PPI tool 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.
Which? is urging people to make a claim ahead of the August 29 deadline. Submitting a claim can be done for free using the Which? PPI tool, which has seen some people receive as much as £18,000 in compensation.
Eleanor Snow, Which? Consumer Rights Editor 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.”
Notes to editors:
- Populus surveyed 2,084 people across the UK on behalf of Which?. The survey was carried out online between 10 and 12 May 2019, asking participants to answer ‘true’, ‘false’ or ‘don’t know’ to nine PPI-related statements. Figures have been weighted and are representative of the UK population aged 18+.
- Which?’s free PPI tool and guidance on claiming can be found here: https://www.which.co.uk/PPI
- The deadline to make a PPI claim is 29th August 2019
- The FCA recently revealed that a total of £334.3m was paid in April 2019 to customers who complained about the way they were sold PPI, taking the total amount paid since January 2011 to £35.3bn: https://www.fca.org.uk/news/press-releases/fca-calls-consumer-act-now-ppi-complaints-deadline-pressure-builds
- To find out how much you know about PPI take the quiz here: https://www.riddle.com/showcase/197618/quiz
- Please see below all questions asked of survey respondents with the correct answers in bold:
| Statement | % that answered true | % that answered false | % that answered don’t know |
| I can claim mis-sold PPI on behalf of a deceased relative | 17% | 19% | 64% |
| The process for claiming mis-sold PPI requires me to complete all forms sent by the bank or provider in response to my initial claim | 36% | 15% | 50% |
| I can request the provider to access my personal information to see if they mis-sold PPI across any of my products | 56% | 4% | 40% |
| If I make a claim for PPI to my bank or provider for a specific product, it will automatically check against all products I had with them | 28% | 19% | 53% |
| I can take a claim to the Financial Ombudsman even if the bank or provider says I cannot | 52% | 5% | 42% |
| If the Financial Ombudsman has rejected my claim, the only option is to go to the small claims court | 22% | 11% | 67% |
| If a bank or financial provider has failed or ceased trading, I cannot make a claim for mis-sold PPI | 10% | 33% | 57% |
| If you have made a successful PPI claim, you may also be entitled to claim back for taxes you were not meant to pay and that was automatically taken off | 27% | 9% | 64% |
Press Release