Payment protection insurance has been around for decades and was intended to safeguard both the banks and financial consumers in the event that they suffered from unforeseen circumstances that impacted on the ability to repay a loan or other financial package.
It was only 1998 however that it came to light that PPI was widely being mis-sold, failing to protect financial consumers and adding significant revenue to banks and the financial sector. Which? magazine is largely credited with uncovering the scale of PPI selling because of the expense of the policies and the largely ineffective protection.
Between 1998 and 2005, leading daily national newspapers continued to highlight the expense of PPI and the many case studies of people failing to use their PPI policies when they thought they were protected.
By January 2005, after significant press coverage, the Financial Services Authority (FSA) stepped in to start regulating the sale of PPI. 2005 culminates with the Citizens Advice Bureau publishing a report highlighting the problems with the systematic selling of PPI.
By November 2005, FSA write to all banking and financial heads, highlighting the issues and the campaign against mis-sold PPI gains momentum.
From late 2005 until the present day, the true scale of PPI mis-selling came to light and one bank or lender after another soon felt the wrath of fines imposed by the FSA.
In 2010, more and more financial consumers made successful claims for PPI compensation either independently, through the Financial Ombudsman Service (FOS) or with the dedicated help of PPI claims specialists.
By mid 2010 however, banks and lenders started a claim that is currently being heard in the High Court. This claim has led to a vast majority of banks refusing to handle complaints and there is currently a widespread détente in PPI compensation claims.
The next few weeks will prove critical to many on the outcome of the judicial review.
Here at PPI Return we have grown up with the PPI industry and have extensive knowledge of gaining maximum compensation for mis-sold PPI in some of the industry’s shortest timescales. To speak to one of our dedicated PPI claims specialists please call 0800 877 8888.
Content correct at time of publication