How Far Back Can You Claim PPI?

canstockphoto16235218If you have a loan, mortgage, or credit card where you are paying PPI as part of your payment every month you may be wondering exactly how far back can you claim ppi.

A lot of information that you read online and hear in the news about how far back you can make a PPI claim mostly talks about the limit of six years for most PPI claims. This mainly refers to the time limit that has been set by the FOS or Financial Ombudsman Service for banks and other financial institutions to thoroughly investigate a claim.

Let’s take a closer look at this six-year time limit for most PPI claims that has been set forth by the FOS. This time limit is the time period for you lender or financial institution must keep a hold of your financial records that pertain to the financial agreement you have with them. Of course, they will keep your financial records for the financial agreement during the time period of the loan or mortgage.

After the policy has ended or the loan has been repaid is when the six-year time limit comes into play. What this time limit actually means is that your bank or financial institution will keep your record for six years from the date yo paid off the loan or mortgage. It doesn’t mean from the time you took out the loan or mortgage which is a common misunderstanding for most people.

If you have a PPI that is still active you can still make claims if you need to since the six-year time limit is not in effect yet. This is possibly one of the biggest misunderstandings that many people have about how far back they can go to file a claim. If you account is active it doesn’t matter whether it was taken out a month ago or 20 years ago your bank or financial institution still holds the financial records from the first day to the present day.

In short many banks or financial institutions strictly adhere to the six-year time limit and discard of all financial records the minute that limit is reached. Other banks or financial institution will keep financial records for longer than the six-year limit.

Remember the six-year time limit is only effective when your loan has been repaid, the policy expires or the loan has been canceled.