Claiming back PPI history
At its peak the payment protection insurance market was huge, generating more than £5 billion per year. The cover was sold alongside many different forms of borrowing including loans, mortgages, credit cards, store cards and hire purchase agreements. In total it is estimated that more than 20 million policies were sold.
Concerns began to be raised about the cover; however, and the degree of protection it offered in the late 1990s. Over the coming years further concerns were raised and these culminated in 2005 with the launch of a ‘super compliant’ by the Citizens Advice Bureau (CAB). The report used case studies gathered from different CAB offices around the country to highlight failings in the way the cover was sold and the degree of cover it offered.
The CAB complaint was followed by an investigation in 2006 by the Financial Services Authority (FSA) in the payment protection insurance market. There subsequent report revealed extensive failings and concerns. Further investigations followed and, as a result, several forms were handed large fines. The most significant fine was handed to Alliance and Leicester and totalled £7 million. It related to telephone sales of their payment protection insurance cover.
The FSA investigation brought attention to the issue of mis-selling and there was a sharp rise in the number of people submitting a complaint and receiving compensation.
In 2009 the FSA banned the single-premium payment protection insurance policy. This kind of cover was regarded as controversial as it often only lasted for five years, but was ‘recommended’ to customers with longer loans. This meant that people were sometimes left unknowingly without coverage.
Since the issues surrounding payment protection insurance were first uncovered in excess of 2 million people have made a complaint regarding mis-selling and billions has been paid out in compensation. For assistance with your claim or just for more information contact us today.