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How to Claim Compensation for Mis-sold PPI

With so much written on payment protection insurance (PPI) and making a compensation claim, it can be easy to forget what the whole thing is about, as well as understanding how to go about making a claim.


Here, Payment Protection Scotland re-cap on everything that you need to know about making a claim for compensation, what to look for and so on.

PPI is a generic name…

… PPI can be found on loans, catalogue accounts, credit cards and more but very few explain that PPI is a generic name. Some banks will not have called it PPI, but something else. Quite often the product was given a brand name, such as 'store card care' or maybe even used the name of the bank and or high street lender offering the product.

PPI is not always obvious or easy to spot…

… The banks knew that they were mis-selling the product and that the majority of people to whom they sold it too either did not need it or were not eligible to make a claim on it. As a result, they hid it in the finer detail of the loan or credit card. If you cannot immediately spot it, take a magnifying glass to the small print.

PPI compensation is not automatic…

… Even though PPI was mis-sold, being compensated is not something that happens automatically. Consumer laws still need to be followed and this means that you, as the consumer, need to highlight why you think the product was unsuitable for you. This could be an issue with the policy itself, or it could be the way that it was sold to you.

PPI mis-selling reasons are many and varied…

… There are many reasons you could state that show you were mis-sold the product. For example, some people don't feel that the policy was discussed fully with them. If they had been made aware that pre-existing medical conditions, for example, were not covered by the policy, then they would not have taken it out.

PPI was not good value for money…

… For the little cover it did offer to the small proportion of people, it was still not great value for money. It was expensive, with the bank making around 80 to 90% profit on each policy and yet, it paid out in as few as 15% of cases.

Have you a claim?

Can Payment Protection Scotland help you make a claim for PPI compensation? Why not call us to find out?


What is Happening With PPI?

The saga of how and why payment protection insurance (PPI) was sold to thousands of people across the country seems to have been rumbling on for a long time.


There are many agencies and organisations involved in trying to make sure that this type of wholescale mis-selling does not happen again. Protecting the consumer from such unscrupulous deeds is something that falls to many organisations, including the Financial Ombudsman.

Publishing regular updates, the Ombudsman estimates that there is £50 billion worth of PPI policies sold to customers over a ten to fifteen year period, estimating that the vast majority of these were mis-sold.

Thousands of people have already complained about PPI, receiving their money back in the form of compensation. For this reason, and with banks adding billions more to their PPI compensation pots, the PPI mid-selling saga has been named as the biggest scandal to have ever hit the British banking industry.

The role of the Ombudsman in your claim

Many people think that they go straight to the Ombudsman with their complaint but this is not the case.

In the first instance, if you believe you have been mis-sold PPI, you should contact the bank or lender that sold it to you. They may agree and pay you back your premiums and so on, in the form of compensation.

However, there are times when this process does not happen smoothly. Your lender may refute your claim, or they may have paid you the incorrect amount of compensation.

Only after it appears that the bank or lender will no longer take an active role in your complaint can you take it to the Financial Ombudsman.

A fair overview

The Financial Ombudsman will look at both sides of the store. They will compare what you say happened (or didn't happen!), with what the bank or lender said.

If they feel that you have been unfairly treated with regard to compensation, they will tell the bank to award you your money back - but they will also calculate how much.

There are serious consequences for banks and lenders who are deliberately holding back in making compensation payments. There are deadlines within which they must react.

If you think you have a claim for compensation, this is what you need to do:

  • Contact your bank, tell them you have PPI and that you think you were mis-sold it
  • Tell the bank why you think it was mis-sold

Or, why not contact Payment Protection Scotland? We could start work on your claim today!

Do Banks Make It Hard To Claim PPI?

With less than 12 months to the PPI deadline August 2019, the most recent report from Which? regarding how banks are handling PPI complaints make for sobering reading. But what does it mean for your PPI claim?


What Which? found

Which? is a well-established and long respected consumer organisation. They work with consumers and brands to bring about better product and services. PPI is just one financial product they have become involved in.

Although customers are being encouraged to lodge complaints regarding PPI if they find they have a policy, it seems that the banks are not always playing fair.

Among the complaints about the claim process that Which? came across were 12-page questionnaires as part of the claiming process with very little time to complete it.

Which banks are the worst offenders?

The Which? report found that;

  • RBS group were the hardest for making a claim with 24% of respondents saying they found the process difficult
  • 19% of customers said that they found the process difficult with Nationwide Building Society
  • Lloyds Banking Group came close behind with 18% of people saying that they thought the process of making a claim was tough.

But it wasn't all bad news. 64% of people who were customers atHSBCwho had made a claim for PPI compensation said the found the claim process straightforward. And the majority of Barclays customers, just over half at 56%, were also happy with the claim process.

Of those customers who had made a successful claim, the average claim was around £1,500.

Nothing to lose

It is important to understand that claiming PPI compensation places you in a win-win situation.

There were millions of policies sold to millions of customers with financial experts believing that the majority of policies were mis-sold.

And that means you could be owed thousands.

  • Unsure about which products you have? - check out your credit profile with Clear Score, Experian and others as the details relating to the loans., credit cards etc. will be contained on file.
  • Contact the bank - and ask them for information relating to PPI policies. They have this information and should share it with you.
  • Contact Payment Protection Scotland for more help and support - we have worked with thousands of customers to successfully claim thousands of pounds in PPI compensation.

No win, no fee

This means that if your claim is unsuccessful, we won't charge you a penny. We make sure that every claim we take on has a high chance of success so you are guaranteed a great service from the Payment Protection Scotland team.

But the PPI deadline clock is ticking - start your claim TODAY!

The End In Sight For The PPI Mis-Selling Scandal

Just when you thought there was nothing more that could rock the payment protection insurance (PPI) scandal, along comes yet another twist in this constantly evolving story.


The August 2019 PPI deadline is less than 12 months away and yet, the whole sorry saga continues to be rocked by changes and twists. With a deadline looming, how up to date are you with PPI facts?

Why is the PPI deadline being introduced?

The PPI mis-selling saga has been dragging on for years. Just as you think it is about to die a death, something comes along to re-ignite the flame.

The total bill could top £42 billion by the time the deadline rolls around but it could be lower if people don't reclaim the money they are entitled to.

When did the PPI mis-selling saga actually begin?

PPI is a product that was sold alongside credit cards, mortgages, loans and so on since the 1990s. The concept is simple: if you fell ill or lost your job, the PPI policy should have covered the repayments on the loan.

In 2005, the Citizen's Advice Bureau lodged a super-complaint with the competition watchdogs and the PPI mis-selling saga as we know it today started to bear fruit.

In some descriptions from reports and reviews at the time, the wholescale mis-selling of PPI was described as a "protection racket" in which banks were making gargantuan profits at the expense of customers and portraying the image that there was nothing that could be done about it.

This was the catalyst that started the ball rolling for PPI compensation, a process that started in earnest in 2011.

How many customers are affected by the mis-sale of PPI?

The predecessor to the modern day regulator the Financial Conduct Authority (FCA), the Financial Services Authority told Parliament that they believed 53 million policies had been sold.

Of the 45 million policies sold by banks, worth an estimated £44 billion, it was unclear how many policies had been mis-sold.

An estimate at the time suggested 3 million customers were affected but at the time of writing, 12 million have claimed back £24 billion in PPI compensation.

And that figure looks set to rise.

Is the August 2019 PPI deadline the same for all customers?

Around 5.5 million customers could be facing an earlier cut-off date after letters were sent out by banks in 2013 inviting them to make a claim for PPI compensation. The three-year window on these 'PPI invitations' looks set to close this year.

Can I claim PPI compensation?

It is a possibility but you won't know until you talk to us. Call Payment Protection Scotland today.

Don’t fall victim to PPI ‘Guarantees’ and ‘Promises’

UPDATE: you have 53 weeks left to claim PPI compensation

Payment protection insurance (PPI) is now firmly entrenched in British banking history as the most mis-sold financial product of all time. Any future contenders to this title will have a significant challenge on their hands to beat the twists and turns of this mis-selling saga.


But there remain a few dark clouds on the horizon. For starts, we are now entering the countdown to the August 2019 deadline. And there are still companies who hook people into making claims through them with false promises and guarantees.

Who are PPI scammers?

Not all companies purporting to be PPI experts are anything of the kind. They are opportunistic people who have decided to prey on people who want to claim their money back after being mis-sold PPI.

They are looking to make a lot of money and do so quickly.

How do they operate?

They operate in all kinds of ways but common factors are:

  • They make guarantees or promises that convince people to use their 'service'
  • They hide the true cost of their service, charging an extortionate fee
  • They tell you they know with certainty that you are not only owed money but how much money they can claim back on your behalf
  • They lure people in by promising them a large sum of money, with no basis on which to make these claims

How to avoid them

Avoiding claim companies that promise or guarantee to get you PPI compensation is easy… but only when you know how.

Here's our guide to avoiding stress and scams, but still claim your PPI compensation:

I. Make your PPI compensation claim yourself- banks and lenders are no longer being stubborn and unhelpful regarding PPI compensation. Quite often, on their website will be a section dedicated to PPI claims. Simply log on and fill out the details.

Other banks and lenders have different ways of doing things, so always check how you submit a claim for PPI compensation.

II. Avoid companies that 'promise' or 'guarantee'success- because there are no guarantees! Even though PPI was mis-sold to thousands of people, not everyone will be due compensation. It is likely you are entitled to your money back but no company or firm will know this until they examine your case in detail.

III. Avoid those that say they already know how much is owed to you- you may have seen this in texts sent to you. These messages are designed to hook and reel you in. No one can know you are due £1874.56p unless they have all your details,which they don't.

IV. Look at online reviews- if people are happy with the service they receive, they will often say so via online forums or review sites. If they receive bad service, they will make their feelings known too! Check independent review sites online, and ask your friends and family too.

V. Call Payment Protection Scotland- as we are a leading claim management company specialising in PPI compensation claims!

What will be the real cost of PPI by August 2019?

When the payment protection insurance (PPI) mis-selling saga started, The City estimated that it would cost a few million pounds to compensate customers.


Unfortunately for the banks, lenders and financial companies, customers were not so easy to appease. When the true extent of the PPI mis-selling scandal became more obvious, customers started to claim compensation in their drives.

And customers were not settling for token gestures, either.

What is included in PPI compensation?

PPI compensation can be worth thousands of pounds to one customer alone which means that, across the board, the PPI compensation bill for the banks is no longer millions, but billions.

In any PPI compensation payment, there will be:

  • All the premiums a customer has paid over the time that they were sold and paying for the policy
  • Interest at around 8%
  • Costs and fees that may have been charged to the account as a result of PPI being added to it
  • And since the Plevin case, commission is to be compensated too if this was more than 50% of the cost of the loan and the customer was not made aware. In fact, you can claim this even if the PPI policy was not mis-sold to you.

How much are you due?

PPI compensation payments vary from one customer to another, and from one policy to another. Even though on the face of it, two claims may look and sound the same, the amount of compensation awarded can vary significantly.

There are many reasons why this is the case;

  • How many PPI policies do you have?PPI was mis-sold on all kinds of credit products, from credit cards to personal loans, to store accounts and more. In some cases, it was also sold as part of mortgages too. The more accounts you have on which PPI was mis-sold to you, the more compensation you will be due.
  • How long have you had the PPI policy or policies?Again, the longer you have been paying for the policy, the more money you are due back. Some people may have had their PPI policies on loans for years, culminating in a bigger compensation payout.
  • What kind of accounts was PPI added to?Credit card PPI were notoriously expensive as the monthly PPI premium was often calculated on a % basis of the amount outstanding on your account each month. The more you are owed, the bigger the PPI premium. Calculating the amount due back is not complex, especially when you use a reputable claim management firm such as PPI Scotland to make your claim.

How big will the final PPI compensation bill be across all banks?

Estimates vary but many experts believe that by the time the proposed deadline of June 2019 arrives, banks and lenders will have paid out £37 billion in compensation.

Have you claimed your slice of PPI compensation yet?

Confused About PPI?

You needn't be as we have all the statistics you need to know, right here!

The mis-selling of payment protection insurance seems to have hounded the British banking industry for years.


On one hand, you have the media berating the banks for refusing or attempting to refuse to pay people the compensation they are entitled to and on the other, you also have articles denouncing the use of claim management companies.

In amongst all this are the true facts and figures about PPI. And we've rounded them up and updated them.

The average payout is between £2,500 and £2,750

But how is this calculated? Consumer organisations have divided the estimated cost of PPI policies to every customer that they think has been mis-sold such a policy and the answer is around £2,500 to £2,750.

However, you may receive far more than this or far less, depending on your individual circumstances.

34 million

This is the estimated number of mis-sold PPI policies in the UK, a staggering number that is almost too big to be imagined.

40% of people are unaware that they have a PPI policy

Or that it was mis-sold to them. The moral of this story is that the vast majority of people have been affected by this mis-selling saga. YOU really do need to check all your paperwork, statements and documents today!

Spot something that looks like PPI or an insurance policy that promises to make payments on the loan etc. if you cannot, for whatever reason? It may not be called PPI - this is a general label - as many banks, lenders and financial institutions called their products by different names.

Around half of the policies made over 80% of the banks' profits for them

A staggering statistic especially when you think that this is YOUR money that they took from you - sometimes, unknowingly - for a policy that was of very little use to you.

In fact, PPI policies only successful paid out in 15% of claims made, far less than the payout rate of essential insurances, such as car and home insurances.

Consumer organisations also estimate that 90% of customers were given misleading information about the PPI policy that was mis-sold to them…

There are many reasons why PPI was mis-sold to customers - why not find out how much your claim could be worth? Contact Payment Protection Scotland.

How Do You Know if PPI Was Mis-sold To You?

You would think it would be obvious but there is a bewildering array of reasons why PPI may have been mis-sold to you.


Our PPI mis-selling wheel will help you whether you are starting a new claim or whether you have made a claim and it has been rejected.

Here at Payment Protection Scotland, we aim to help people by offering a professional service, to help them claim their money back.

We know and understand that PPI was sold to millions of customers across the UK, including here in Scotland. We are passionate about helping you claim your money back and we don't want you to miss out.

But if you don't make your claim soon, you could face not having your money back at all. You have until August 2019 to launch a PPI complaint so take a look at our mis-selling wheel top find out more.

Here are some ideas as to why you probably were mis-sold PPI…

Our graphic shows six reasons why PPI may have been mis-sold to you, although there can be other valid reasons too.

Many people, for example, were told that PPI was compulsory - it was NOT! You could have bought a similar type policy from somewhere else, getting a substantially better deal and cover.

A common sales tactic is the second reason on the mis-selling wheel. It was the implication that buying the policy would place your application for a loan or credit card etc., in a much better light. Again, this is not an acceptable selling practice.

Likewise, many people were also not told of the specific exclusions such as not being covered on the grounds of existing health issues or that how you worked also impacted on whether you were covered or not.

And possibly the most misleading one is the fact that for some customers, they were not even told that PPI was added to their accounts and this is why it is so important to claim back PPI compensation from your bank, credit card provider or lender!

Why not get help from Payment Protection Scotland? We are experts in the field of PPI compensation.

Were YOU mis-sold PPI?

  • Were you told it was COMPULSORY?
  • the sales representative IMPLIED it would benefit your application
  • If you did buy it, were you told the cover would NOT last the full term of your loan?
  • Were you told about the health issues and illnesses that would NOT be covered under the policy?
  • Were you unemployed, self-employed or retired at the time you took the policy out?
  • It could have been added without you knowledge or consent...


Have You Been Mis-sold PPI?

What is PPI?

Payment protection insurance (PPI) was a policy that was meant to protect you in the case that you could not make repayments on a loan due to loss of income, either through unemployment or sickness.

What is the problem with PPI?

It was not the golden ticket for the consumer that we thought it was but it was a path paved with gold for the banks, who made up to 80% profit per policy.


The customer, paying for a mightily expensive policy was not covered in a way that they thought they were… but no one knew this until someone pointed out how unfair the policy was.

As a result, thousands of customers found out how useless the PPI policy was. They found that they would have been unable to make a claim, especially in cases such as those who were self-employed or retired. Thousands of other policies were mis-sold for others reasons too.

Banks must now trawl through years' worth of records, find the people they mis-sold PPI to and invite them to make a claim.

What does this mean for you?

It means that if you can prove you were mis-sold PPI, you can claim your money back. This would include;

  • All premiums paid
  • Interest at 8%
  • Any fees and costs
  • Commission, if the amount paid was more than 50% of the cost of your PPI policy but you weren't told

"But, I don't have PPI!"

Many people who call us for advice will tell us they have received a letter, it looks genuine enough but how can they make a claim if they don't have a PPI policy.

The truth is simple - if your bank or lender has written to you, somewhere in the past you must have been paying for a PPI policy, you just may not have known it at the time, or now.

This is because some PPI policies were 'sold' to customers in a way that meant the customer had no idea they had bought it. It has simply been added to their account.

This was prevalent in cases where people applied for and were accepted for loans, credit cards and so on, online. The 'opt-in' box for PPI was already ticked at the bottom of the small print and thus, many people did not see it.

Neither were people made aware of the limited amount of cover it offered. In fact, the truth is that if someone had talked through the terms and conditions, highlighting what the policy did not cover, we doubt you would have bought it.

If you think you have a claim for mis-sold PPI why not let Payment Protection Scotland help you make a claim?

Time IS Running For for PPI Compensation Claims

As we basked in the summer of 2018, there is a dark cloud looming on the horizon. The rumours were rife for a long time and the banks were supportive of the move but, it has pros and cons for the customer.


What are we talking about? The PPI compensation deadline August 2019.

Time is out for PPI compensation claims. There are now 12 months left to make a claim. Make your claim or face missing out.

What is PPI?

Banks have set aside more than billions in compensation so far making the mis-sale of PPI the biggest scandal to have rocked the financial industry in the UK.

People were sold policies that they either did not want or could not have claimed on.

Typically, the PPI policy was sold alongside another financial product such as personal loans, overdrafts, credit cards, stores cards, car finance and so on. The idea was that the policy would make repayments on your debt should you fall ill, and your income was affected.

The worst offender in this mis-selling debacle is Lloyds Banking Group who has set aside another yet more money to make forthcoming compensation payments.

What was highlighted as part of the compensation deadline debate was another issue and one that PPI Scotland have been saying for a long time - there is a whole group of people out there who think they are not entitled to claim PPI but are!

Do you have a valid claim?

If you don't have the paperwork, call the original bank or lender who made the loan and ask them for copies of all paperwork relating to your loan or credit card etc. They must keep paper copies for six years but, they may have digital copies that date back further than this.

You can make a claim on any account on which you had PPI and there is no time limit on these accounts.

However, it may be more difficult in some cases to claim compensation on an account that is very old but, the banks and lenders are realising that the industry has suffered badly as a result of this scandal. As a result, they are compensating in most cases, quickly and fairly.

Do you have a claim?

Make it now before any deadline is announced! If you had a loan, credit card or any other kind of credit product in the last decade or more, the likelihood is you were sold PPI too - claim your money back with Payment Protection Scotland.