Majority of customers yet to claim for mis-sold PPI - here's what you need to know

The Financial Conduct Authority (FCA) is cutting off Payment Protection Insurance (PPI) reclaims, meaning you have until 29 August 2019 to get your cash back. Just 12 million people have claimed, despite 64 million policies being sold – meaning many more are likely to be able to claim.

If you think you've been mis-sold you can reclaim for free, but don't delay – the reclaim system is likely to get jammed up now a final deadline's in place, so act NOW.

PPI is an insurance policy sold alongside loans, cards, overdrafts, mortgages and catalogue accounts. It's designed to cover repayments in the event of an accident, sickness or unemployment – though it was frequently mis-sold. We've long campaigned on this, and have had over 6.65 million reclaim template letters downloaded.

From today banks must also consider a new ruling, known as 'Plevin', about the amount of commission charged, which means if you've ever had PPI, you were likely mis-sold. This is likely to see millions more able to reclaim their cash, but think of it as a last resort: check first if you were mis-sold PPI on other grounds as you will be owed a lot more.

MoneySavingExpert.com founder Martin Lewis said: "The big question now is… have you been Plevined? This new form of PPI mis-selling turns the whole thing on its head.

"Until now, you were usually only due money back from PPI if the firm had either given you an inappropriate policy, such as employment cover for the self-employed, or lied to you, like saying PPI was compulsory. Yet with Plevin, in most cases it's simply a case of 'Did you have PPI? Then you are owed money." Here's Martin's video explaining more:

Simply having had PPI means you were likely mis-sold – here's why

If you've already had a PPI claim rejected, or have checked and do not believe you were mis-sold your policy, the chances are you're still owed cash.

The FCA has ruled that from today banks must consider a new mis-selling category called 'Plevin'. In 2014 the Supreme Court ruled Susan Plevin was treated unfairly because she wasn't told about the large amount of commission (71.8%) taken from her PPI payment.

Following this ruling, the regulator started a series of consultations to set up a general redress scheme for millions of others also affected.

It has now come into effect so that, from today, banks must consider a Plevin payout in all mis-selling cases. They will also have to write about Plevin to 1.2 million people who've had past reclaims rejected.

You're eligible to claim for Plevin if:

• Over 50% of your PPI's cost went as commission to the lender, and that wasn't explained to you; you are due back the extra commission above that.

• Your PPI has been active at some point since April 2008.

• You haven't already made a successful PPI claim.

Staggeringly, with loan PPI, on average, 67% of what you paid was pocketed by banks as commission from insurers, and banks almost never mentioned it – so millions more people are owed possibly billions more pounds. If you bought a standalone PPI policy, from a broker for example, it's unlikely as much commission was paid out – and you won't be eligible, but do check. On a £10,000 loan over five years, your 'Plevin' compensation would typically be £500 (if you're due all the PPI back for other mis-selling, you don't get both).

Remember, it's VITAL to check first if you were originally mis-sold PPI because if you discover you were mis-sold, you'll be entitled to much more cash. The bank must also now automatically consider you for Plevin as well, so if you're rejected you could then get a Plevin payout.

If you've previously been rejected for PPI or don't think you were mis-sold your policy, check if you're owed Plevin cash and use our FREE reclaim tool.

You need to act NOW to reclaim mis-sold PPI

Because of the 2019 deadline, it's key to check if you've ever had a loan, credit or store card, mortgage, overdraft or catalogue debt to see if you were mis-sold PPI.

Claims over how PPI was sold must be received by the firm you're complaining to on or before 29 August 2019, or they won't be considered. Complaints received ahead of the deadline will then be allowed to run their course.

There are a few people who will still be able to claim after 29 August 2019, however.

• If you buy a new PPI policy after 29 August 2017, the deadline WON'T apply to any mis-selling claim.

• If you have an existing PPI policy AND you make a claim on that policy for a payout (eg, if you become unemployed and claim as a result), if you then find the firm rejects your claim and you want to dispute it and say you were mis-sold, the deadline WON'T apply.

• If you have an existing PPI policy and you want to make a mis-selling claim WITHOUT having claimed on the policy, the deadline WILL apply.

To check if you were mis-sold PPI, see our Reclaim PPI for Free guide and use our FREE reclaim tool.

Arnold Schwarzenegger used for PPI termination advert

The FCA today released its first advert to mark the start of the two-year deadline for the majority of PPI claims.

Strangely, it features an animatronic model of Arnold Schwarzenegger's head urging people to make a decision on whether to claim - although sharp-eared viewers will clock it's a voice-over and not the Terminator actor himself.

The advertising campaign, which will roll out across TV and social media, has cost more than £42 million, and has been paid for by 18 firms which reported more than 100,000 PPI complaints between 1 August 2009 and 1 August 2015.