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What was the REAL Problem with PPI?

PPI was an insurance policy intended to protect repayments on loans etc. should a customer be unable to do so.

Sounding like a wise financial move who wouldn't sign on the dotted line? The problem was, there were over-promises made when it came to who the policy would cover. And there were other issues too. What are they?


Charge 1: Expensive

We know now that people were paying over the odds for a policy that,if(and it's a big if because less than 15% of claims on PPI policies were successful and took over a year to resolve!) their claim was successful, would deliver very little.

In some cases, the cost of PPI added as much as 20% to the cost of the loan, after interest. The consumer organisation Which?, a virulent campaigner against PPI back in 2008, also found people saw the cost of their loan double when PPI was added to it.

Charge 2: Ineffective

Unlike other insurances, the chances of claiming against the PPI policy were low. Which? suggested that banks and lenders were deliberately contriving to make this the case.

If the bank could decrease your chances of claiming on the policy, they would make more money. Estimates suggest that there was only a 15% chance of a claim being successful, an incredibly low figure compared to other insurance products such as car insurance that has one of the highest success claim rates.

Charge 3: Mis-sold

Of course, we all know that PPI was mis-sold and this is the basis on which thousands of customers are making PPI compensation claims.

There are many reasons why PPI was mis-sold to customers, from it simply being added to it being sold to customer that the bank already knew would be unable to claim e.g. those self-employed or retired, for example.

Charge 4: Inefficient

And finally, the consumer organisation Which? pointed out that for those customers that did attempt to claim under the policy, that the length it took for the claim to be settles was far too long.

Customers, despite being in desperate financial straits and having a totally eligible claim, found that the time taken to pay out on the policy was very long as well as deliberately complicated and slow.

As part of this whole process, some of the biggest, most well-known and trusted British banks have received hefty fines for poor, less-than- honest selling methods.

If you had a loan, catalogue, store card, credit card, mortgage etc. from the mid-1990s onwards, the likelihood is that you have been affected by the mis-selling of PPI. Contacting Payment Protection Scotland does not place you under any obligation to make a claim with us for PPI compensation so you know you can find out more without fear of being sold something you don't need…

5 Frequently Asked PPI Questions

PPI was mis-sold on a huge scale. The product was expensive for the little cover that it offered but, it was the way in which it was sold that now means people are claiming their money back in droves - the tune of £300+ million per month.

Questions were asked and answered sought as to the how and why something of this scale could happen.


HOW did banks mis-selling PPI?

In the main, banks and lenders werenot fully explaining the policyto customers. For example, if you were self-employed, to claim on the policy you would have to shut your business down in the hope that your claim was one of the 15% successful ones made against the policy. Would you take that chance?

There were other mis-selling reasons - call the team at Payment Protection Scotland.

WHY did the banking industry culture add to the problem?

PPI was a product that the bank liked because for each sale they made a significant profit, up to 80% profit in some cases.

Employees or brokers selling the policies - either face to face or over the phone - were also making great commissions, adding as much as 67% on to the cost of the PPI policy making it an expensive but lucrative product.

Customers are now receiving the commission payments back too. Does this affect you? Give our team a call.

HOW do I make a claim?

You can contact your bank or lender direct and tell them that you believe you were mis-sold PPI. You can do this via letter or by completing a form they may have sent you.

You can get help and this will cost you a % figure of the final PPI compensation you claim back. At Payment Protection Scotland, we are specialists in helping people to get their money back.

We charge a fee for our service but with a remarkably high success rate, we are the go-to PPI claim company.

WHY has a PPI deadline been introduced?

The PPI deadline has been introduced, says the Financial Conduct Authority, to 'draw a line under the whole issue'. It also believes that by introducing a PPI deadline in August 2019 that customers who are yet to claim will make a decision.

It could flood the PPI compensation claim system and the figures released by the FCA already show that since October 2017, the number of successful claims has been higher than previous months.

HOW is the PPI deadline being introduced?

You have until 11.59pm on 29th August 2019 to lodge your PPI complaint about a policy that you believe was mis-sold to you before July 2017.

The friendly, experts at Payment Protection Scotland can help. Give them a call today!

The ‘Back to Basics’ Guide of Claiming PPI Compensation

We have been helping customers claim PPI compensation for many years, taking their cases to various banks, lenders and financial institutions across the UK.

Due to our experience and insider PPI knowledge, we know the pitfalls as well as what a roller coaster ride claiming PPI can be. The good news is, we stick with every complaint until we get the conclusion that we know is right - compensation for a customer who has been mis-sold PPI.

Back to Basics

What is PPI and what am I looking for?

Payment protection insurance is abbreviated to PPI and is an insurance product that was sold to customers alongside a main product, such as a loan, credit card, mortgage, car finance and on catalogue account, store cards and so on.

Confusingly, PPI is a generic name meaning that banks and lenders called their insurance product y a different name.

Top tip - look for an additional product or payment alongside your loan repayment amount on statements. If you have the paperwork for the account, you may see some kind of insurance policy talked off. It could be listed on the same paperwork as your loan or credit card, or as a separate policy.

How much could I claim?

How much compensation you receive for mis-sold PPI depends on several factors. If it is deemed you were mis-sold the policy, the factors that affect how much you could be entitled to claim in terms of PPI compensation are:

  • The number of accounts you have- many people who have claimed thousands in PPI compensation have more than one account that has PPI added to it. This means you are making more than one PPI premium payment per month and these soon adds up!
  • Credit card accounts- these are notorious for having very expensive PPI policies added to them and, the monthly premiums were often calculated as a % of the outstanding balance. If the balance of your credit card was always close to the limit, you may find that the amount of PPI compensation on its way to you could be a sizeable amount
  • Time- another factor that has a major impact on the amount of PPI compensation you could be entitled to claim is the length of time you have had the account or accounts. Clearly, the longer you have been paying PPI premiums the more you could be receiving back.

How do I claim?

You can claim PPI compensation back from your bank, lender or any other financial institution, telling them you think you were mis-sold PPI and give them the reason why. The bank should respond to you within 8 to 12 weeks.

Or, we can do it for you! We are an experienced and knowledgeable claim management company who can help you… why not call?

£3 billion – The Figure that says the PPI Advertising Campaign IS Working

Hand in hand with the August 2019 PPI deadline is the advertising campaign encouraging people to 'make a decision' about whether to claim PPI or not.

And it seems to be working.


Increasing PPI Compensation Pots

Since the PPI scandal broke, the banks have had to revise their estimates of how much money they would pay out in compensation. It seems that over the years, they have continually underestimated not only how many customers they owed compensation to but how much.

So far, UK lenders have waved goodbye to £29.2 billion, a far bigger figure than the few million the banks predicted was the size of the problem back in 2011/12.

But at the end of February 2018, Royal Bank of Scotland (RBS), Lloyds, Barclays and HSBC all announced that they faced bigger charges relating to PPI compensation than they thought. And experts believe it is because the advertising campaign is making its mark.


The PPI deadline announced for August 2019 disappointed many for different reasons. And with the promise of a hard-hitting advertising campaign to match, it was hard to see how the banks would not have been hit further.

And it seems that the banks were still underestimating their customers…

  • RBS - they were the last to declare an addition to their PPI compensation fund, adding another £175 million to during the last week of February.
  • Lloyds Banking Group - pushing its tally to a staggering £18.8 billion, Lloyds added another £1.7 billion at the start of the year. A move, it said, mirrored the "increased complaint levels including the impact of the first FCA advertising campaign".

PPI as a banking 'risk factor'

Of course, RBS and Lloyds are not the only banks to be hit by PPI compensation claims. With their annual reports released, most if not all banks and lenders made reference to PPI but significantly, for the first time, it was referred to as a risk factor. This means that the PPI compensation bill will still be having an effect on the bank finances long after the 2019 PPI deadline.

For instance, RBS expects half a million complaints before the deadline rolls around, on top of the 2.4 million complaints that have been made to them already. And that could mean an increased bill of £30 million.

Barclays estimates complaints of a nearly twice that, meaning they could have an additional amount of £100 million to find in the form of PPI compensation.

Some smaller banks could be facing an uncertain future as a result of PPI risk. For example, Clydesdale and Yorkshire banks, owned by CYBG, is at risk of PPI compensation outstripping its indemnities - in other words, it will pay out more than it is worth.

There could be £15 billion of PPI compensation yet to be claimed. Is your PPI claim part of it?

PPI – Has Anything Changed?

The PPI mis-selling scandal has been an embarrassment for the banks, but it is not the only issue to have been raised about how banks practice their trade. From fixing interest rates to dodgy dealings at higher levels, to bonus payments that many say are undeserved, has PPI been the vehicle for change that many people it has?


Could it happen again? It is a big question and although we would like to think the mis-selling of a financial product on the scale of PPI wouldn't happen again, some experts are not so sure.

Have lessons been learnt from the mis-selling of PPI?

There have been changes, all in an attempt to protect the customer, so that this type of thing does not happen again.

Single premium policy

Some people were sold PPI and the amount of the policy added in one lump sum to the loan that they applied for. This amount added to the loan was also liable to have interest added to it, meaning that many customers, unfortunately ended up paying a lot more per month that they thought they would.

The second issue with this was, once some customers realised they had a policy which was effectively useless when they rang to cancel the policy, they found they were not reimbursed the remaining amount of cash. Feeling aggrieved they were being denied the money that was rightfully theirs, these continued with their protests, eventually winning their PPI fight.

Single premium policies are no longer sold to customers or businesses.

Opt in, not out

Online applications, mainly for credit cards but also for some other products, had a small opt in box that was already ticked as part of the application process. It was at the end of a very long form, meaning the majority of people did not notice it was there.

Customers must opt in to any scheme or additional products, not opt out.

Advised sales

Many customers were advised to buy PPI but were not why they should or how it met their needs. As a result, people bought a policy that did not cover them. This is the basis on which many customers are now making compensation claims.

All advised sales, in future, must be clearly explained to the customer and customers must also receive a clearly written letter, outlining why the product is right for them.

A gap of time

Many customers were sold PPI at a time when they were in a heightened emotional state, for example buying a house, applying for a second mortgage or a loan for another purpose. On being given the impression that buying PPI would help their application succeed, many people bought into products that were not suitable.

As a result, banks and lenders must give the customer at least 7 days from the date of their application to be offered additional products such as insurances etc., so that customers can make a more objective decision.

Things have changed but make sure YOU get your PPI compensation back!

HOW Do You Know You Have Been Mis-sold PPI?

It is a question that is on every customer's lips - what possible reasons are there for PPI having been mis-sold to them? If they agreed to it, can they still claim that PPI was mis-sold? In this short article, we take a look at some of the most common reasons behind mis-selling of this now infamous product.


Impressions and Implications

"The impression or implication that your application would more likely be successful if you took out PPI"

Loan applications are decided on merit by examining your credit score providing the basis of the yes or no answer, along with the level of interest rate they will charge you. The purchase of any additional product alongside your loan, credit card, mortgage, store card, catalogue account etc. should make no difference what-so-ever.

Information and Consent

"Not being informed or not giving your explicit consent to PPI being added to your account"

Many customers, particularly those who bought loans or credit cards online did not realise that at the end of the application form was a box, already ticked that gave permission for PPI to be added to the account.

For other customers, PPI was added later in the term of the loan with customers informed of the lenders decision by mail but were given the impression it was a compulsory, no-opt out purchase.

This practice has now been stopped by the Financial Conduct Authority (FCA). Customers must have the decision whether to opt in, and not to opt out.

Advised Sales

"You were told the PPI policy suited you"

This is known as an advised sale, something that is common within the financial industry. If you seek any financial advice on any product and a range of policies are recommended to you, you should receive written confirmation that clearly states WHY these policies are suitable for you and your circumstances.

Many PPI customers were not given this information and so cannot recall why they were told PPI was the right option for them. This constitutes mis-selling.

Commission Payment

"You were not told how much commission was paid to the person or company who arranged PPI"

If this commission was over 50% of the cost of the loan and were not told about it, this too is a reason to claim compensation, even if it is decided the product was not mis-sold in itself.

Most commission payments were as high as 67% of the cost of the loan. If you knew about this, wouldn't you have queried the cost of the policy?

Not sure if you were mis-sold PPI or not? Contact Payment Protection Scotland to find out more on the mis-selling reasons…

Make that PPI claim!

The PPI deadline is counting down and with each tick of the clock, we are closer to so many customers missing out on claiming their cash back. Make 2018 the year you claim your money back and let Payment Potection Scotland be the company that helps you.

PPI Claim

The 'no obligation, just-want-to-find-out-a-bit-more' chat

We understand that even with all the information on PPI compensation claims circulating around that people still have questions. They want to know more about the claims process, what they need and don't need, as well as how long will it take, how much money could they get back, does it affect their credit score and more.

Some people are ready to plunge headlong into making a claim, whilst others are more cautious. Taking the first step is something we all do every day and every journey begins with it. In the case of your PPI compensation claim journey, your first step is contacting PPI Scotland for the 'no obligation, just-want-to-find-out-a-bit-more' chat.

But why trust us?

The 7-Point Guide as to Why Payment Protection Scotland is one leading claim management company?

We are trusted and respected throughout the industry for the amazing service we offer our customers:

  • We will only take on genuine cases of PPI compensation claims - in other words, our extensive initial information gathering exercise with our customers means we build genuine cases for PPI claims. If you do not have PPI on your accounts - or we cannot prove that you have - then we will not take you claim further.
  • We are also honest. Some accounts do have PPI on them. Occasionally, although PPI was massively mis-sold to thousands of customers, there are cases where PPI was a genuine sale. In the unlikely event that this is the case, we will tell you.
  • We do not offer wild guarantees when it comes to successful PPI compensation claims. We offer straight-forward,easy-to-understand advice on your case.
  • We do not send unsolicited text messages or emails telling customers how much they are owed - no-one can know this until the facts and figures of the case have been considered. The average payout is £2,750 but it can be a lot less, as well as being substantially more for some customers.
  • If you contact us but decide not to continue, then that is fine! You are under no obligation when you call us. Neither will we plague you with phone calls afterwards.
  • We keep you up to date with the progress of your caseon a regular basis and in the format you want - this could be a quick phone call, a text or even emails.
  • There are no up-front fees and you pay us, once you have received your PPI cheque

There is nothing simpler! Contact Payment Protection Scotland today, either by phone or by using our online form.

Thousands of people yet to make a PPI claim and the PPI deadline is coming!

The announcement of a PPI deadline in 2017 shocked banks and consumer organisations, albeit for different reasons. The banks wanted the deadline to roll around sooner, but consumer organisations didn't want one at all, and certainly not yet!


Their argument was that only 4 in 10 consumers with a claim for PPI compensation had claimed their money back. Introducing a deadline, even it if was two and a half years away at the time, would be putting these customers at a disadvantage.

Claiming PPI compensation is YOUR choice

Banks and some other organisations, including the Financial Conduct Authority (FCA) say that claiming compensation for mis-sold PPI is a consumer choice. It is optional - you don't have to claim your money back.

But, argue consumer groups and financial experts, if people are unaware they have PPI, if consumers are unaware they can claim their money back then it is not a choice.

The FCA agreed and spent £42 million on an advertising campaign as part of the deadline, all with the emphasis of encouraging people to 'make a decision'. Some say this is weak, an ill-conceived advertising campaign that is yet to show any real results.

But why the FSO think so many people are yet to make a claim?

The Financial Services Ombudsmans (FSO) still think that the majority of customers are unaware banks added PPI to loans and credit cards automatically. And they also think that many customers will be aware that some of their other credit accounts, such as catalogues and store cards, would be affected by PPI.

Hence, the term PPI was not mentioned or discussed at the time you and other customers agreed to your loan. So how would you know to look for PPI?

What should customers do?

Asking your bank or lender if there was PPI on your loan is a perfectly legitimate questionand one which your bank must answer in a timely manner.

Whilst banks and other financial institutions bemoan the high level of fraudulent claims, the FSO disagreed with this back in 2013, saying the figure was as low as 3%.

The FSO has taken on hundreds of more staff to deal with PPI complaints being submitted. Some are startlingly simple and should have been resolved by the bank but, they say, many more cases are more complex than this.  They estimate that it will now take 12 to 18 months for PPI cases referred to them to be resolved.

In fact, the FSO is became increasingly impatient with the banks, highlighting the banks lack of depth in investigating PPI, being too quick to dismiss PPI compensation claims by customers. As a result, customers have no other course of redress left other than to refer their case to the FSO, adding to the massive case load it is now ploughing through.

If you believe you have a PPI claim, do not delay any longer - contact Payment Protection Scotland on how they can help you!

Could YOU Be Eligible for PPI Compensation?

It's a big question and it seems that many of us are still unsure as to whether we can claim our money back. There are many reasons why people don't make a claim - it is, after all, YOUR choice - but there is a bigger reason and it may be affecting you.



Apathy is a from of tiredness, brought about by something being so familiar or too good to be true that you believe it doesn't apply to you. In the case of PPI, you may not even bother to check if you have a claim for PPI compensation or not.

There are millions of customers across the UK who have been affected by PPI. With millions of PPI premiums mis-sold to thousands and thousands of customers, the likelihood of it affecting you are high.

What you COULD do NOW

…check documents, paperwork, statements and any other papers for loans, credit cards, mortgages, store cards, catalogue accounts and any account on which you borrowed money for a policy that promises/guarantees/suggests that it will make repayments on your loan etc. if you are unable to do so due to illness, unemployment etc.

It may not be called PPI

PPI or payment protection insurance is the generic term, meaning that banks and lenders called their policies by a different name. Some companies called their PPI policies 'card care' for example.

If you are not sure, rather than let the opportunity of claiming your money back from your bank, contact Payment Protection Scotland.

Once you have found your documents, what then?

You have three choices:

  • Do nothing and let the possibility of never seeing your money again slip by
  • Start to make a complaint yourself to your bank or lender - you do this by writing a letter (templates are available online across the web), telling them why you believe you were mis-sold the PPI policy on the first place
  • You can enlist the help of Payment Protection Scotland to do this on your behalf - we charge a few for this service (*check our website for full details)

Here's the REALLY Important Bit

If you intend to claim your money back, you need to do so before 29th August 2019. This is the deadline imposed for compensation claims for PPI policies sold before summer 2017.

Why get help from Payment Protection Scotland?We want to help as many people as possible to claim their money back. For example, some customers have a personal loan and credit cards, they may also find that you have some kind of PPI policy on your mortgage. If this is the case, Payment Protection Scotland can help you in the circumstance where there are multiple PPI claims to be made.

If you would like help, why not contact us for a no-obligation chat?


Do You Have Questions About PPI?

PPI is a subject that has been in and out of the news for years. The declaration of a PPI deadline and the accompanying adverts encouraging people to decide about making a claim for compensation will hopefully stir people to investigate whether they have a claim or not.

But sometimes, it leaves more questions than answers.


Can I make more than one claim for PPI compensation?

Each PPI policy is a separate claim. You may have PPI on a credit card, another policy on a catalogue account, another one on your mortgage. You would make a separate claim for each, even if they are with the same provider because it has to be proven that each policy was mis-sold.

Can I make a claim on a loan or other account that has been 'paid off' and closed?

Yes you can, there is nothing stopping you only deadlines based in consumer law. You will need to have been making payments on the account within the last 6 years, as set down in consumer law.

Is there a maximum amount that can be claimed?

Your compensation settlement will depend on

  • how much you borrowed
  • how long the term of the loan was for and how long the PPI term was over
  • how much the PPI was charged at.

The average PPI claim is estimated to be around £2,750 but you could be able to claim back much more than this - or a lot less. Once we have your full details and information, we will be able to provide you with a more accurate figure of how much compensation you could claim back.

How does the Payment Protection Scotland process work?

Once you have contacted us, we will gather a variety of information and detail from you, including the lenders that we need to contact on your behalf. We will look at your case and assess it as to whether you have a claim for PPI compensation or not. There is no obligation to continue with a claim with us.

If you do and you decide to continue with us, then we take the next step which is to lodge complaints with lenders on your behalf.

Before we can do that, we will need written permission from you allowing us to act on your behalf.

How long does it take to claim compensation?

Providing we have the paperwork, signatures and all the relevant information needed, and your bank or lender does not contest your claim, they will hopefully make an offer quickly.

There are deadlines by which the bank or lender must response to your PPI complaint, but this will not necessarily mean that you will have a PPI offer made in this time.

Payment Protection Scotland can help you make a claim for compensation - call us TODAY!