Glasgow: 0141 844 0017 * Edinburgh: 0131 224 0094 * Lanarkshire: 01698 286 463

Archive for tag: WHat is PPI

What is PPI?

With the announcement of a PPI deadline expected any day, the time has come to remind customers what the policy is and what the mis-selling saga is all about.

It is also an opportune time to encourage anyone who has yet to make a claim for mis-sold payment protection insurance (PPI) to step forward and do so because the clock could be ticking on making a claim.

What is PPI?

PPI is an insurance product designed to cover loan repayments in the event you, the policyholder, became too ill to work or lost your job.

There have been around 50 million policies sold since 1990 but, in the late 90s, it became clear that there were problems with PPI and the way it was sold.

Criticisms of PPI

  • The cost of PPI on a loan could add as much as 20%. In some cases, the addition of PPI could double the cost of the loan
  • It was ineffective too, structured in a way that limited the chances of people being able to make a successful claim; only 15% of claims made on a PPI policy were successful
  • Many people were told that PPI was essential or compulsory when this is not the case and never has been
  • Claiming was a lengthy process with long, complicated forms and unacceptable delays on pay out (if the claim was successful which it was unlikely to be)

Mis-selling of PPI

It was mis-sold over and over again. The scale of the mis-selling is hard to comprehend. You could be due all of your money back but first, you would need to be clear on why you were mis-sold the policy;

  • You were not told you were having PPI added to your loan etc.- many people are shocked to realise that they had PPI in the first place, as they cannot remember agreeing to it. This is a concern that many consumer organisations share as these customers will be unaware they have money to claim back before the June 2019 deadline.
  • You were retired or self-employed- if you were retired or self-employed the likelihood of you being able to make a successful claim against the policy was low to non-existent.
  • You are unaware of the significant exclusions under the policy- from certain medical conditions to any medical conditions you currently have, there are all kinds of exclusions of which you need to be aware. You may have thought that you were covered but were not.
  • The impression you had to buy it- many people felt they were told that they had to buy PPI in order for their loan application etc. to be accepted. This was not the case.

If you think you have PPI compensation claim, come to the experts for advice. 

What is PPI?

Payment protection insurance (PPI) is a policy that was mis-sold to thousands of people across the UK. But, in the melee surrounding PPI compensation claims, it can be difficult to understand why there was such a problem, after all the idea behind the policy sounds like a good one…

Payment protection insurance was designed to protect the repayments that borrowers needed to make on loans, credit cards and so on. If the borrower lost their job, went on maternity leave or suffered a loss of income, they could activate the insurance to make the repayments on loans and so on their behalf.

But, there was a problem. The banks were dazzled by the profit margins on this policy and their staff, paid partly on commission were equally dazzled by the significant pay packets they took home after a bumper month of selling PPI policies to customers. Greed and profits took over and thus, the policy was sold to people who would not be able to claim on the policy, as they did not fit its criteria.


After many years of the policy being mis-sold, there was a complaint finally made by the Citizens Advice to the Office of Fair Trading. It included:

  • Excessively high prices for a relatively bog-standard policy
  • Partial protection, with many exclusions that prevented reasonable claims
  • High pressure sales tactics
  • Slow and unfair claims process when consumers were eligible to make a claim

But there would be another 5 years of wrangling, arguments and counter-arguments before the case of unfair selling of PPI would come to a head, and end in victory for the consumer.

But even then, it was not straightforward. The banks and financial institutions, possibly aware of the depth and breadth of the mis-selling issue, were reluctant to give away their profits in compensation. They denied many people with a rightful and eligible claim to PPI compensation.

These cases then landed on the doorstep of the Financial Ombudsman Service (FOS). Still working on all other complaints regarding financial products, and not just PPI, the back log is still around 12 months but, FOS are ensuring that all customers get a fair hearing. Still, 7 out of 10 cases referred to them are being found in favour of the customer.

Have you made your claim for PPI compensation? Would you like someone to do this for you?

With your permission, we can deal with your PPI complaint for compensation. We charge a fee for this service but, we have already helped thousands of people claim the compensation for mis-sold PPI that they are entitled to. Could you be next?

What is PPI ?

PPI stands for Payment Protection Insurance.

Many credit cards, loans, car finance agreements and mortgages taken out by UK consumers over the last 10 years have included PPI.

This insurance (PPI) was intended to cover the monthly repayments of the policy holder if they were unable to make their repayments due to factors such as unemployment, sickness, or accidents.

In many many cases these policies were missold by the lender. This has been recognised by UK law, therefore, policy holders can now claim back the PPI and the related interest.

Payment Protection Scotland is  leading PPI Claim Back company.