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PPI: The 411

BRGM08 Girl with CashSo you’ve no doubt heard the term ‘PPI’ or ‘Payment Protection Insurance’ bandied about over the last few years, but what is it and why the big fuss?

PPI had been sold with loans, credit cards and store cards all throughout the Nineties, but the controversy didn’t begin until the mid-2000’s.

The policies were designed to protect the borrower should they get ill or lose their jobs, which is all well and good but the real controversy came when it was revealed that many borrowers had no idea they had been sold these costly policies or in some cases were ineligible for a policy in the first place.

Many banks used aggressive or misleading tactics in order to ensure that customers purchased the policies, even in some cases telling customers if they didn’t purchase a policy they wouldn’t be able to take out a line of credit, which isn’t the case.

After a huge investigation and numerous fines, the banks have now been forced to pay back billions that they owe to customers for mis-selling PPI.

However the FCA is now considering imposing a time limit on all PPI claims, so if you believe you are owed something then it is best to process a refund as soon as possible.

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