Unfortunately, the UK Financial Ombudsman’s deadline to present a refund for mis-sold PPI expired on 29 August 2019 and therefore you are too late to make a claim under the PPI Compensation Scheme.
If you issue civil court proceedings against the lender for breach of contract and breach of the consumer lending legislation, these are likely to be defended on the basis that they are statute barred under the Limitation Act 1980 which prescribes a six-year pri***** *****mitation period for a claimant to issue court proceedings against a defendant for breach of contract. In latent damages cases where the effects of the breach are not discovered until a long time after the breach was committed and close to or after the expiry of the six year pri***** *****mitation period, Court Proceedings must be issued within three years of the breach being discovered or when it reasonably ought to have been discovered.
Section 33 of the Limitation Act does allow a claim to proceed out of time at the Court’s discretion if it is just in all the circumstances. Factors that the Court will consider in allowing a claim to proceed will be whether the Claimant has a good reason for delaying in bringing the Claim and whether the Defendant has been prejudiced in its chance of defending the Claim i.e. witnesses are still traceable, and documents are still available.
However, I am doubtful as to whether a Court would allow your claim to proceed under the Latent Damages limitation period or for the limitation period to be extended under Section 33 of the Limitation Act as PPI claims have been in the news regularly for over a decade and therefore practically every consumer borrower in the country has known about their possible entitlement to a PII refund for many years.
However, if your lender was a respectable bank or building society that is still solvent and trading (such as HSBC, Barclays, Lloyds TSB or Santander) and you are still a customer with them, they MAY refund you your PII as a matter of preserving good customer relations. Nevertheless, this will be more than what you are legally entitled to and it would be a very good result if your lender refunds you even a fraction of the original value of the PPI policy on an “ex gratia” basis.