
Many consumers were mis-sold PPI (Payment Protection Insurance) with retail finance with top brand store cards, home catalogue accounts and retail loans for the expensive consumer goods like sofas and tv’s. PPI was usually added to a customer’s policy by retail credit providers, in some cases without their knowledge. Some even rejected a credit application if PPI was refused by the customer.
However it wasn’t all bad news, as the PPI was was intended to protect borrowers’ from being unable to make repayments if they were unable to work due to illness or injury. The problem was how PPI was mis-sold by the retailers.
There are many examples of mis-selling PPI in the Retail Finance sector, where some customers were not even made aware by retailers that PPI was attached to their policy, and if the customer was made aware that PPI had been added, they were not informed it was optional.
There is a new type of complaint reason in relation to PPI, which now needs to be considered due to a 2014 court case (often referred to as ‘Plevin’). This court case ruled that, as over 50% of the cost of the PPI being sold to the consumer was taken as commission by the lender and they were not informed of this, it created an ‘unfair relationship’. Therefore, the FCA have now produced further guidance in relation to PPI complaints, stating that any undisclosed commission paid over the 50% ‘tipping point’ should be refunded to the consumer, along with interest, if this was not disclosed to them.
Types of Retail PPI
PPI on Store Cards
In the past, store cards were a lucrative option for high street stores. They were sold to those who were either unwilling or unable to pay for their products in one go, and made profit through those who failed to pay off the whole balance each month, attracting interest charges of between 18-30%. Unfortunately PPI was sold on many store cards.
PPI on Catalogue Accounts
A large amount of the accounts and credit services provided by catalogues are underwritten by other financial institutions. Some of these are not well known, but others are remarkably famous. Some of these credit facilities were provided by companies that have since been purchased by larger banks, and these banks are now responsible for handling the PPI complaints.
Latest PPI News
Complaints about guarantor loans see sharp increase - Choose
4th March 2021
Complaints about guarantor loans see sharp increase Choose ...Payment Protection Insurance (PPI) Advice - Which?
4th March 2021
Payment Protection Insurance (PPI) Advice Which? ...Ombudsman complaints: Guarantor loans replace PPI - This is Money
3rd March 2021
Ombudsman complaints: Guarantor loans replace PPI This is Money ...Lloyds refunds £975,000 to PPI customers after breaking rules – are you owed a refund too? - The Sun
3rd February 2021
Lloyds refunds £975,000 to PPI customers after breaking rules – are you owed a refund too? The Sun ...Victims of mis-sold investments losing near to half their compensation - This is Money
26th January 2021
Victims of mis-sold investments losing near to half their compensation This is Money ...Plans to cap fees charged by claims companies - BBC News
21st January 2021
Plans to cap fees charged by claims companies BBC News ...NatWest pays thousands to fight PPI claims in court - The Times
3rd January 2021
NatWest pays thousands to fight PPI claims in court The Times ...NatWest blasted over legal costs for new PPI cases - This is Money
26th December 2020
NatWest blasted over legal costs for new PPI cases This is Money ...22nd December 2020
Amigo wants to limit guarantor loan mis-selling payouts to avoid going bust – what it means for you MoneySavingExpert ...PPI 2: How to make a claim for PPI past the deadline - Eastern Daily Press
17th December 2020
PPI 2: How to make a claim for PPI past the deadline Eastern Daily Press ...Martin Lewis gives important update for those who had a PPI payout - Bradford Telegraph and Argus
29th October 2020
Martin Lewis gives important update for those who had a PPI payout Bradford Telegraph and Argus ...How to claim back tax owed on PPI payouts yourself - Gareth Shaw - Yorkshire Post
24th October 2020
How to claim back tax owed on PPI payouts yourself - Gareth Shaw Yorkshire Post ...Am I really owed tax back on a PPI refund, and can I claim it myself? - iNews
21st October 2020
Am I really owed tax back on a PPI refund, and can I claim it myself? iNews ...