Other options. Close drawer menu Financial Times International Edition. Search the FT Search. World Show more World. US Show more US. Companies Show more Companies.
Markets Show more Markets. Opinion Show more Opinion. Up to 64 million policies were sold, mostly between and , but a good proportion of them were actually mis-sold to people who did not want or need them, or who would not be covered. New claims end on 29 August, but the impact of the mis-selling scandal will be felt for years to come.
The year-old, from Gravesend, had a PPI policy on a credit card for 20 years that would never have paid out. Mrs Barker says PPI was sold "at a time when financial services were not as diligent as they should have been", and that there were clear rewards for them to make the sales.
For Rachel Allan, the loan insurance was clearly a "ridiculous" product, and old bank documents revealed that the cost used to make up a big chunk of her loan repayments 15 years ago. Simon Shipley has a long-term health condition, would never have been able to claim on PPI policies, and yet was sold the insurance on a mortgage and two loans.
Some of the policies ran for more than a decade. It was when PPI was mentioned on youth TV hit Love Island that Guy Anker, managing editor of Moneysavingexpert, realised that the scandal had put consumer rights firmly into the mainstream.
Moneysavingexpert, and its founder Martin Lewis, were at the forefront of the campaign for PPI compensation and the subject has been one of its biggest concerns for visitors to the website ever since. Mr Anker says that the scandal has been at the heart of the public's distrust of banks - in a more tangible way than the banking crisis of a decade ago.
Martyn James, of consumer website Resolver, says PPI was was an example of "a dramatic loss of trust". Now, he says, consumers have "a willingness to question former symbols of authority". As a nation we are no longer willing to put up with being treated badly and are increasingly vocal about it," he says.
Yet the PPI compensation scheme has been muddied, according to Mr Anker, because claims companies have "acted so appalling, they have created a scandal in itself". Claims management companies CMCs make claims on behalf on consumers, but then take a cut of any compensation payouts - as much as a third in the past. Everyone has received a call, text, or email about claiming PPI.
A whole industry grew up, with firms offering to make claims for PPI compensation payouts on consumers' behalf. If you took out any kind of consumer loan, store card, credit card or mortgage in the s or s, you may have been mis-sold PPI.
Go back through all your old loan and mortgage statements and check for any mention of an insurance to cover your payments if you lost your job through accident, sickness or unemployment. Many lenders will now tell you if you call them up to ask whether you had PPI.
Was the fact that the insurance was optional made clear to you? Were you even aware you had it? If you had to pay for the PPI as a single payment, did the adviser make it clear that the insurance cost would be added to the loan?
Or that you would be paying interest on it?
0コメント