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
PPI Deadline is less than 100 days and counting - Gladstone Brookes
24th May 2019
PPI Deadline is less than 100 days and counting Gladstone BrookesThe great PPI claims scandal takes a step nearer its conclusion as we have now passed the 100 days to deadline marker, but banks are still paying out... ...PPI – Are you sure you’ve reclaimed ALL of it? - Gladstone Brookes
21st May 2019
PPI – Are you sure you’ve reclaimed ALL of it? Gladstone BrookesExperts believe consumers could be missing out on millions of pounds in PPI compensation even though they may have already submitted a successful claim... ...What is credit card PPI? | The - Motley Fool UK
19th May 2019
What is credit card PPI? | The Motley Fool UKIs PPI all bad or does it have some redeeming features? ...Barclays in PPI Mess - Money Expert
14th May 2019
Barclays in PPI Mess Money ExpertA recent comment by Barclays Chairman John Mcfarlane has raised a few eyebrows as he claimed that a large proportion of those who make claims or payment ... ...PPI complaints subside but 130% rise in payday loan problems at FOS - This is Money
14th May 2019
PPI complaints subside but 130% rise in payday loan problems at FOS This is MoneyNearly 40,000 payday loan complaints made in 2018-19 - up from 17,000; The Financial Ombudsman *Service* received 388,000 reports in total; PPI appe ...PPI over and done with? No way! - Gladstone Brookes
14th May 2019
PPI over and done with? No way! Gladstone BrookesPayment Protection Insurance (PPI) was essentially a good product, designed to help you pay the premiums on any financial agreement if you came out of... ...Already made a PPI claim? You could still be owed money – Which? News - Which?
12th May 2019
Already made a PPI claim? You could still be owed money – Which? News Which?Which? is urging claimants to check they haven't been unfairly denied compensation and to submit another claim against all products, if they've only ma ...Time is running out to reclaim mis-sold PPI - South Wales Argus
10th May 2019
Time is running out to reclaim mis-sold PPI South Wales ArgusIn his latest Argus column, Martin Lewis of moneysavingexpert.com explains how to reclaim mis-sold PPI. ...PPI claims deadline – 114 days and counting - Gladstone Brookes
7th May 2019
PPI claims deadline – 114 days and counting Gladstone BrookesThe great British PPI scandal is finally drawing to a close – 114 days and counting before the August PPI claims deadline – but there are still millions... ...Martin Lewis of MoneySavingExpert: PPI need-to-knows before it's too late - Eastern Daily Press
7th May 2019
Martin Lewis of MoneySavingExpert: PPI need-to-knows before it's too late Eastern Daily PressThe deadline to start a PPI reclaim is fast approaching. ...Martin Lewis reveals you could be owed huge amount of tax on PPI - how to claim it - Express
6th May 2019
Martin Lewis reveals you could be owed huge amount of tax on PPI - how to claim it ExpressTHE DEADLINE to start a PPI reclaim is fast approaching. On 29 August this year the guillotine will fall on the nearly £40000000000 mis-se ...PPI checked? Now get the tax back too – Martin Lewis - The Scotsman
4th May 2019
PPI checked? Now get the tax back too – Martin Lewis The ScotsmanIf you haven't reclaimed yet– why not? If you have, you might be entitled to some more cash, writes Martin Lewis. The deadline to start a PPI reclaim is fast .. ...Act now if you were mis-sold PPI as final deadline for submitting a claim nears - This is Money
4th May 2019
Act now if you were mis-sold PPI as final deadline for submitting a claim nears This is MoneyIf you believe you had loans or credit agreements such as an account with a catalogue company or a long-forgotten credit card – you co ...
