The PPI Scandal
Payment Protection Insurance covered repayments in circumstances where individuals couldn’t cover payments themselves. This could have been due to a number of reasons such as; being made redundant, accidents or health problems which resulted in individuals being unable to work as well as, illness, disability or death.
Among the 64 million PPI policies which were sold in the UK, the majority were in fact, mis-sold with complaints starting from the early 2000’s. This scandal received a huge projection in 2005 with the Citizens Advice issuing a ‘Super Complaint’ and this soon began a series of events that led to compensation payments for consumers. This complaint also made it possible for a huge number of some types of PPI to be banned.
By August 2019, banks, building societies and other types of credit providers had paid out over £36billion in compensation to those who had been involved in the PPI scandal. With the average payout being £2000, consumers were rightfully able to claim back the huge amounts that they were owed.