PPI mis-selling was first highlighted in 1998. In 2005, complaints about PPI mis-selling increased and the FSA issued a report outlining concerns about deception by lenders. Over subsequent years, the FSA and Competition Commission continued investigations and fined companies, culminating in a 2009 ban on single premium PPI policies and new protections for borrowers. Since 2011, millions of successful claims have been made for money owed due to PPI mis-selling.
3. PPI has been sold for years, but how does the time-line breakdown?
1998: Mis-selling scandal was highlighted by several consumer magazines,
due to it being a very poor quality product, due to the return from the costs.
2005: The Citizens Advice Bureau issues a number of complaints about the
mis-selling of the financial product known as Payment Protection
Insurance.
Nov 2005: The Financial Services Authority issues a provisional report
regarding the selling of PPI and this report outlined the concern regarding
the deception that had been committed by the number of lending
institutions who had been selling PPI.
2006: September and October of 2006, saw the FCA slap fines on a few
small lending companies. Borrowers who had been wrongly sold PPI began
claiming back.
2007: In both January and February of 2007 the FSA again fined companies,
but this time they were larger and the money involved was millions of
pounds.
2008: The Competition Commission continues issuing the report about PPI
sales and then followed up in April with another report which highlighted
the issue.
2009: In May the FSA banned the sale of single premium PPI policies and in
September they also announced very strict steps in order to protect the
affected borrowers.
2010: Banks begin to seek a judicial review of the new measures by
claiming that they imposed standards retrospectively. Sales of PPI banned.
2011: High court begins in January and it then leads to the High Court judge
ruling against the banks.
2011 – Present: Since the rulings in 2011, there have been millions of
people who have successfully claimed back the money that they were
owed.
