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
Counting the Toll of UK's Costliest Banking Scandal - The - Washington Post
22nd September 2019
Counting the Toll of UK's Costliest Banking Scandal - The Washington PostIt was the costliest scandal in the history of British banking: the mis-selling of payment protection insurance, or PPI, to tens of millions of borrowers wh ...Martin Lewis: How you could claim tax back on PPI claims - Yorkshire Post
21st September 2019
Martin Lewis: How you could claim tax back on PPI claims Yorkshire PostYou thought PPI was all over. It is now. On 29 August the guillotine on PPI reclaiming fell – cutting off your ability to claim for mis-sold PPI. ...18th September 2019
MoneySavingExpert Martin Lewis explains 13 ways to reclaim thousands of pounds in owed cash The SunMARTIN Lewis has revealed 13 ways for Brits to reclaim owed cash - and it could boost your bank balance by thousands of pounds. Th ...Martin: 'PPI's over, but I've THIRTEEN more ways you can reclaim £1,000s' - MoneySavingExpert
17th September 2019
Martin: 'PPI's over, but I've THIRTEEN more ways you can reclaim £1,000s' MoneySavingExpertI'm no fan of a compensation culture. Instead MSE and I have long, proudly been at the forefront of reclaiming – that's getting YOUR mo ...Updates Lloyds share price defies last-minute PPI surge, but what's next? - CMC Markets
17th September 2019
Updates Lloyds share price defies last-minute PPI surge, but what's next? CMC MarketsDespite an unexpected surge in last-minute PPI claims, Lloyds' share price was able to jump last week after the bank halted its buyback programm ...Mis-measured and over-valued properties 'could be next PPI scandal', claim - Property Industry Eye
17th September 2019
Mis-measured and over-valued properties 'could be next PPI scandal', claim Property Industry EyeA floorplans supplier which claims that its products are accurate to the millimetre has said that property mis-measurement and over-v ...UK banks in stand-off with government over PPI claims - Financial Times
16th September 2019
UK banks in stand-off with government over PPI claims Financial TimesSome of the UK's largest banks are in a stand-off with the government over whether they should hand over millions of pounds in compensation to the creditors of ...Martin Lewis explains how to get more money back from PPI claims even after the deadline - Express
15th September 2019
Martin Lewis explains how to get more money back from PPI claims even after the deadline ExpressYOU THOUGHT PPI was all over. It is now! On 29 August the guillotine on PPI reclaiming fell – cutting off your ability to claim for ...Nationwide adds to PPI claims fund | Business - The Times
13th September 2019
Nationwide adds to PPI claims fund | Business The TimesNationwide Building Society has become the latest lender to take an extra hit for payment protection insurance mis-selling, adding up to £50 million to its ... ...Taxman makes PPI claim on bankrupts | Business - The Times
12th September 2019
Taxman makes PPI claim on bankrupts | Business The TimesThe taxman is in line for a windfall worth millions of pounds from compensation for payment protection insurance that was mis-sold to bankrupts.The official ... ...Lloyds, Barclays to Make Extra Provisions for PPI Claims - Yahoo Finance
11th September 2019
Lloyds, Barclays to Make Extra Provisions for PPI Claims Yahoo FinanceLloyds (LYG) and Barclays (BCS) are making extra provisions to be able to compensate customers, after the surge in last-minute claims related to the PPI ... ...Total Cost of PPI Claims to Banks to Hit £50 Billion - Money Expert
10th September 2019
Total Cost of PPI Claims to Banks to Hit £50 Billion Money ExpertA last-minute surge of PPI compensation claims submitted to Lloyds Banking Group and Barclays will push the total cost of the scandal to British banks to £50 ... ...Taxman hits the PPI jackpot: Exchequer set to pocket millions of pounds - This is Money
10th September 2019
Taxman hits the PPI jackpot: Exchequer set to pocket millions of pounds This is MoneyHMRC is likely to be a major beneficiary from a deluge of PPI complaints submitted to banks by the Official Receiver, a department tasked with r ...
