There was a time when the term Payment Protection Insurance was all but unheard of by many. Previously muttered only within the four walls of a bank, the phrase is now commonplace, regularly heard on the radio and television and read in the news and on emails.
When the PPI scandal first hit there was much confusion about where the finger was to be pointed. However it has since become clear that direct lenders were the most culpable mis sellers of payment protection insurance.
According to figures from the Financial Ombudsman Service Annual Review 2011|2012, over 65 per cent of complaints about mis sold payment protection insurance related to banks while complaints against Financial Advisers have rightly continued to decrease and now account for only 1.0 per cent.
These figures demonstrate financial advisers have played virtually no part in PPI mis selling.
Millions of customers have been affected by the PPI mis selling scandal, paying for a policy they didn’t want, could use or, in many cases, weren’t even aware they had.
Lenders have now collectively set aside over £9bn to cover the cost of compensation claims.