The mis-selling of Payment Protection Insurance took a long time to surface as a fully blown scandal. It was not until the Financial Services Authority (FSA) took over the regulation of general insurance sales that the campaign really came under the media spotlight.
That was in 2005. For years prior and then up until April 2011 major high street banks were still selling PPI alongside credit card, mortgage and loan applications to customers who either didn’t need it or would never be able to claim.
How PPI was mis-sold for so long
Smaller companies were beginning to suffer fines from the FSA as early as 2006 but the product was so profitable in a very competitive market that the banks did not heed the warnings.
Alarm bells should really have started ringing following a further report from the FSA detailing evidence of poor legal compliance and sales practices that ignored the ‘Treating Customers Fairly’ (TCF) regulations that most financial services companies had agreed to abide by.
Claiming back PPI campaign gathers pace
As a result of that report which included a number of company visits and mystery shopping exercises the names of bigger institutions began to make headlines. Large online financial companies such as Egg were fined alongside long-established insurance companies and banks (Alliance & Leicester and Liverpool Victoria amongst the biggest names).
Once the case against the banking industry reached the High Court the mis-selling of PPI finally began to slow down as the major high street banks began to take it more seriously.
However it certainly did not stop, organisations of such a size tend to have a very large turning circle and there are cases of mis-selling being identified right up to the April 2011 ruling and even beyond it.
The big PPI calculator
Having lost their case to stop customers demanding compensation following successful awareness raising campaigns by a number of consumer groups the banks finally held up their hands and announced that billions of pounds (the total figure believed to be in the region of £6bn) would be set aside to settle compensation claims.
If you have taken out a loan, credit card or mortgage with attached payment protection insurance in the last six years some of that money could be yours. Contact The PPI Team today to discuss your claim and start the process of getting your money back.