During 1990-2010, millions of people were mis-sold PPI policies alongside other financial products. Whether they were taking out a loan, a mortgage or another form of credit, these policies were originally designed to protect borrowers in the case that they were injured or fell ill, or would protect their families in the case of death. However, banks and lenders were found to have mis-sold these policies through deception or a lack of sufficient information and as a result, millions are either contacting banks themselves or using the best PPI company they can find to help them make their claim.
But what happens when the bank or lender is no longer in business or simply can’t afford a payment? That’s where the Financial Services Compensation Scheme (FSCS) comes in.
Who Are The FSCS?
The FCSC was originally set up as part of the Financial Services And Markets Act in 2000 and were designed to provide financial compensation to customers in the case that an authorised financial firm were unable to offer compensation payment for any reason. For the most part, these cases tended to be against companies that were no longer in business or who were unlikely to be able to afford the compensation amount owed. They also boast the fact that consumers are not required to pay any fees for their services.
How Can They Help?
The FCSC can protect consumers against lost funds, by providing them with the compensation necessary in most cases. However, this is often the last resort. In terms of PPI, this can be useful for claimants who may have been mis-sold PPI by companies that were no longer operating, or who had fallen into administration. They have provided compensation for consumers of London Scottish Bank Plc, Crystal Clear Home Loans Limited, UK Car Group Limited, Picture Financial Services Plc and more, so they have certainly proven useful to borrowers in the past.
If your lender or bank is no longer operating, you can submit a PPI claim through the FSCS and still stand a chance at getting the money that you were owed. This also counts for all Plevin-esque cases – the original Plevin case saw the court vote in favour of compensation for the extortionate commission charged and kept by banks. If this is the case for your bank or lender, you may be able to claim compensation for this through the FSCS, too.
What Can I Do To Claim?
If you want to claim through the FSCS, you can do so with relative ease. In some cases, the Financial Ombudsman Service (FOS) can help you, or the claims company you’re using if you’ve decided to opt for this route. For those wanting to “go it alone”, the FCSC makes it easy to claim with an online service, complete with log-ins, so you can return to your claim at any time.
The PPI scandal has devastated both banks and consumers, and the FSCS has proven time and time again to be a valuable source of help for countless borrowers. If you believe you may be owed compensation by a bank or lender unable to provide the funds, why not give it a try?