20 March 2017
Payment protection insurance (PPI) was a policy that mis-sold to thousands of people, possibly millions. Most major banks, building societies and lenders were involved in the biggest selling scam ever to have hit the British banking industry.
But with the compensation process hitting its sixth year, why is PPI still such a big deal? Is there an end in sight?
the issues with PPI were first raised back in the mid-1990s when a customer complained he was being forced to buy an insurance product he did not want or need.
This, along with other concerns prompted organisations, such as 'Which?' the question how and when the policies were being sold to people.
The issue was also raised in Government. PPI was expensive, it offered very little cover, it was a lengthy and complicated process to make a claim and the ways in which it was being sold to customers were also suspect when compared with consumer laws.
But these problems were the tip of the iceberg. What soon became apparent was that there were limited powers to force banks to act and change their practices.
It was a long and drawn out process but eventually, the banks backed down and the process of compensation customers began.
And the numbers kept growing and growing. From one month to the next, thousands more customers lodged complaints with banks and lenders. Banks thought that it would be a 'storm in a tea cup' and that very few people would come forward to make a claim for PPI compensation.
But, people came forward in their thousands - and are still doing so today.
The scale of the problem is extraordinary. So far, £24.2 billion has been paid back to customers with compensation claims for mis-sold PPI. One businessman claimed back a staggering £120,000. Another businesswoman claimed back £84,000 after being mis-sold PPI policies on two business credit cards for many years.
The Financial Conduct Authority (FCA) has been consulting on the possibility of introducing a nationwide PPI compensation deadline.
There has been no firm announcement yet but it is thought that June 2019 in the favoured date. The FCA are currently working with creative ad agencies to create a comprehensive promotional campaign to encourage people to claim the compensation they are entitled to. The campaign is ear marked to start in June 2017, giving customers the two-year notice period required under consumer law to claim their money back.
We have already helped thousands of customers to claim their money back and with a success rate of more than 93%, we are the go-to claim management company.
To find out more, just call us - there is no obligation and no pressure to continue with a claim.