Retail Finance PPI Claims – Store Cards, Catalogue & Retail Loans

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

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