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At PPI Refund we’re often asked ‘how long does a PPI claim take’, in fact it’s probably the question we get asked the most. Whilst there are no guarantees, there are certain timeframes in which the banks and lenders must work within when dealing with PPI claims and complaints.

Obtaining Information to Launch a Claim: 40 Days

If you are not able to provide a copy of your agreement, which most people are unable to do, then we would contact your bank or lender to request the relevant information. This information includes whether PPI was added to your mortgage, loan, HP agreement, credit or store card. We’ll ask the bank and lenders will provide information on all of your accounts.

The reason for this is that many banks and lenders in the past would only investigate one account, and this was another one of the lenders tactics to try and avoid paying the rightful amount to the victims of the scandals. Our experience and expertise has meant that at PPI Refund we’ve been able to set up Subject Access Requests with the banks and lenders. This means that we’re are able to obtain information faster than the usual 40-day period that customers would get.

Case Launched, Awaiting Decision: 8 Weeks

Once a bank or lender receives the complaint regarding alleged mis-sold PPI they are legally bound by the regulators to complete their investigation of the complaint and issue a final response within 2 months. Some lenders will take less time, however most will drag out the process. Lloyds, for example, did something similar and were fined £4.3million.

Complaint Upheld, Waiting on Refund: 4 Weeks

Once a complaint has been upheld the lender will normally pay out within a month. Whilst there is nothing specific in terms of guidelines, the rules state that the refund should be prompt and done as quickly as possible.

What if the Claim is Rejected?

Most lenders reject valid complaints. However, don’t despair, this is simply a stalling tactic used to put people off claiming again. As you can imagine it makes financial sense for the banks to reject claims, whether valid or not.

It is estimated that 9 in 10 customers who receive an initial rejection don’t take the claim further. Lenders aren’t keen on working with reputable lenders like us here at PPI Refund, because we know all of their underhand tactics and they know that if they’ve rejected a valid claim then we won’t give up.

Rejections should be escalated to FOS without any delay. The Financial Ombudsman Service are an independent government body that investigates complaints against banks and lenders and they will review all rejected claims.