History of Mis-sold PPI & Timeline
THE two-year countdown for claiming compensation for being mis-sold payment protection insurance started on Tuesday 29th August 2017 and the Financial Conduct Authority (FCA) has unveiled a new advertising campaign to make sure people file their claims before the deadline. The time bar clock is ticking.
The final deadline is announced by the Financial Conduct Authority (FCA) in an effort to draw a line under one of the banking industry's biggest scandals. The FCA also confirms that customers will have new grounds to complain if they were not made aware of commission being paid when they were sold PPI. This rule will also apply to claims that have previously been rejected.
FCA delays it's decision on PPI deadline pending further consultation on widening the scope to incorporate profit share (Plevin) and fee cap. Fee cap CMR update statement
The FCA decision on the whether PPI deadline will be imposed is expected to be announced.
Banks commence talks with the FCA to negotiate a deadline for PPI claims to bring what has become known as the biggest mis-selling financial scandal to an end.
In November 2014, the Supreme Court ruled in Plevin v Paragon Personal Finance Ltd (Plevin) that a failure to disclose to a client a large commission payment on a single premium PPI policy made the relationship between a lender and the borrower unfair under section 140A of the Consumer Credit Act 1974.
The Lloyds Banking Group is fined £4.3m for delays in compensation payments to up to 140,000 customers who were mis-sold payment protection insurance.
According to the Financial Ombudsman Service PPI becomes the one of most complained about financial product in banking history. Source
9 May 2011
British Bankers' Association decides not to appeal against High Court ruling.
5 May 2011
Lloyds Banking Group withdraws from legal challenge, saying it wants to "draw a line" under the affair.
High Court judge rules against banks.
Competition Commission confirms PPI cannot be sold at point of sale.
Banks seek judicial review of new measures, arguing they impose standards retrospectively.
FSA launches consultation paper outlining how complaints handling can be improved.
FSA bans sales of single-premium PPI.
FSA writes second letter to chief executives, asking them to stop selling single-premium PPI with loans.
Competition Commission recommends those selling a loan should not sell PPI at same time. Barclays lodges objection.
Alliance & Leicester fined £7m for mis-selling PPI.
Which? publishes research into PPI sold with credit cards, showing that 1.3m people mistakenly believed they would be approved for credit if they took PPI.
Financial Ombudsman Service asks FSA to investigate how firms are handling PPI complaints.
Which? publishes research into PPI sold alongside loans. It shows up to 2m people have been sold a policy they will never be able to claim on.
Competition Commission publishes two papers highlighting further problems in PPI market.
FSA introduces comparative tables for PPI.
FSA imposes more fines on PPI providers.
Competition Commission publishes paper on profitability of PPI.
FSA fines Egg, Liverpool Victoria and Land of Leather over PPI failings.
OFT makes formal referral of PPI to the Competition Commission
FSA imposes fines on major PPI providers for not treating customers fairly.
OFT issues a report on PPI, saying it intends to refer issues to Competition Commission.
FSA issues report finding more evidence of poor compliance: 24 companies enter “enforcement procedures” for PPI failings.
FSA fines smaller firms for mis-selling PPI.
FSA issues its first report on PPI. Identifies poor selling practices and lack of compliance controls in PPI market following company visits and mystery shopping exercises. Writes to all chief executives highlighting key findings.
Citizens Advice publishes Protection Racket report identifying problems in PPI market. It issues “Super Complaint” to the Office of Fair Trading over PPI sales.
FSA takes on the regulation of the sale of general insurance. It says PPI review one of its priorities that year.
PPI problems highlighted in The Daily Telegraph and The Sunday Telegraph.
Issue of PPI being a poor-value product because of expense and exclusions first raised in Which? magazine.