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.
Store Card PPI
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.
Catalogue Account PPI
Latest PPI News
Leading deposit alternative rejects criticism by Jackson-Stops agent - The Negotiator
23rd January 2019
Leading deposit alternative rejects criticism by Jackson-Stops agent The NegotiatorDeposit replacement firm Reposit has rebuffed claims that both its product and those offered by its competitors could be in breach of the tenant f ...PPI payout heads for £34 billion - Gladstone Brookes
22nd January 2019
PPI payout heads for £34 billion Gladstone BrookesThe total payout for mis-sold PPI is heading for £34 billion just months before the PPI claims deadline in August. Figures released by the Financial Cond... ...PPI NEWS UPDATE – JANUARY 2019 - Gladstone Brookes
18th January 2019
PPI NEWS UPDATE – JANUARY 2019 Gladstone BrookesWith just months to go before the PPI claims deadline on August 29th Britain's banks are still paying out and average of more than £⅓ billion a month in... ...Sponsored-The Deadline Is Coming: Why You Need to Make Your PPI Claim Now - About Manchester
14th January 2019
Sponsored-The Deadline Is Coming: Why You Need to Make Your PPI Claim Now About ManchesterThere is a good chance that the PPI deadline hasn't been at the forefront of your mind over Christmas and New Year's. But now that 2019 has ...14th January 2019
Opinion: How do we avoid a PPI-type scenario in the new deposit replacement market? Property Industry EyeIt is thrilling to be at the centre of a new market as it develops. Deposit replacement has taken off. There are easily over ...Pension mis-selling claims double in two years - Choose
10th January 2019
Pension mis-selling claims double in two years ChooseMis-sold pensions have given rise to £40m of compensation claims in 2018, but experts fear the figure could rise much more. ...New Year resolutions still going strong? - Gladstone Brookes
9th January 2019
New Year resolutions still going strong? Gladstone BrookesWe do it every year between Christmas and New Year when we start to consider what the next 12 months will be like and what we can do to make life better for ... ...PPI NEWS UPDATE – DECEMBER 2018 - Gladstone Brookes
20th December 2018
PPI NEWS UPDATE – DECEMBER 2018 Gladstone BrookesThe total amount of compensation paid for the mis-selling of PPI by Britain's financial industry has broken the £33 billion barrier. The Financial Conduc... ...Claims management firms will have to give more info upfront - MoneySavingExpert
17th December 2018
Claims management firms will have to give more info upfront MoneySavingExpertThe financial regulator has published a new set of rules for claims management companies, including providing customers with more transparent fee inform ...Adviser fights off bogus PPI claim - FT Adviser
7th December 2018
Adviser fights off bogus PPI claim FT AdviserThe Financial Ombudsman *Service* has ruled in favour of a mortgage adviser in a case in which a client falsely claimed a payment protection insurance PPI ... ...Britain’s ‘bad bank’ sets aside £44.1 million for PPI - Gladstone Brookes
4th December 2018
Britain’s ‘bad bank’ sets aside £44.1 million for PPI Gladstone BrookesBritain's 'bad bank' has set aside another £44.1 million to pay out future successful PPI claims.UK Asset Resolution (UKAR) is the bank created by the ...4th December 2018
UK banks could face multibillion pound liabilities for mis-sold mortgages — ME Group Financial TimesA claims-management technology company reckons that banks could be on the hook for billions of pounds in compensation for mis-s ...Banks face claims blitz over variable rate mortgage charges - Sky News
4th December 2018
Banks face claims blitz over variable rate mortgage charges Sky NewsBritain's biggest banks are facing a *fresh* deluge of compensation claims from a campaign targeting mortgage customers who may have been overcharged ... ...
