What is PPI?

Posted on May 8, 2018 by Canary Claims What is PPI

If you’re unsure about what PPI is and if it affects you, read our guide below to find out all the key information.

The vast majority of adults in the UK have been the owner of a credit card, mortgage or store card, or taken out a loan. More likely than not, you would have owned or purchased at least one of these in the past 10 years. If so, you may well have been offered or even sold payment protection insurance (PPI).

The Details: What is PPI?

Payment protection insurance was a type of insurance used to cover payments if a customer couldn’t. This could be due to sickness, loss of job, or death. PPI was often paid upfront or in monthly installments.

It was first sold in the 1980s in a fair and above-board manner, but it was primarily during the 1990s that the banks realised how profitable the insurance was. As such, vigorous selling techniques were used by bank employees. Many customers felt pressured to buy the insurance, were told it was compulsory, or even had it automatically added without their knowledge.

This constitutes mis-selling, meaning thousands of UK consumers are due a refund from their bank. For the past decade, millions of people have claimed for mis-sold PPI. This has resulted in billions of pounds being paid back to consumers. To date, the banks have paid £30 billion to consumers.

What is a PPI Claim?

In order to receive a refund from the bank, you must submit a PPI claim. A claim involves contacting the bank or lender who mis-sold you PPI and giving evidence that it was mis-sold to you. Was PPI discussed in full, including the process of ever needing to make a claim on the insurance? Did you know PPI wasn’t compulsory? If the answer is no, you could have been mis-sold the insurance. Read our full guide to how PPI was mis-sold.

You can contact the bank yourself or use the best PPI claims company, Canary Claims, to act on your behalf. If you don’t have the paperwork indicating that you had PPI, we can uncover this information for you, making the claim much easier for you.

What is the PPI Deadline?

The banks have been paying money to consumers for over 10 years. To put an end to the saga, the Financial Conduct Authority (FCA) announced a deadline for all PPI claims. All consumers must make their PPI claims before 29th August 2019. The FCA hopes that the deadline will encourage people to make a claim, rather than put it off.

To promote the campaign, the FCA hired Austrian-American actor Arnold Schwarzenegger. His robotic head can be seen on TV adverts and billboards telling people to make a decision about claiming. The banks involved in the mis-selling scandal contributed £30 million to the advertising campaign.

Since the announcement of the deadline, even more people have made claims against their bank and lender. In the latter half of 2017, PPI claims were at their highest level in four years, with £415 million being paid to customers in January 2018.

The clock is ticking for people to make a claim. If you believe that you might have been mis-sold PPI, we urge you start your claim as soon as possible. Don’t get caught up in the PPI queue — receive your money as soon as possible!

Use our PPI claims calculator to discover how much you could receive from a PPI claim. Canary Claims can find your paperwork and offer a no win, no fee service [Cancellation charges may apply only if the claim is cancelled after the 14 days cooling off period. The fee would be based on the work done at the time of cancelling at a rate of £120 per hour and up to a maximum total of £180] , meaning you have nothing to lose by starting your claim today.