The payment protection insurance saga began in the Nineties. Now the story of the scandal reaches its final chapter at the High Court in London. Our timeline sets out how events unfolded.
PPI Mis-Selling Scandal
1998: Issue of PPI being a poor-value product because of expense and exclusions first raised in Which? magazine.
1998-2005: PPI problems highlighted in The Daily Telegraph and The Sunday Telegraph.
January 2005: FSA takes on the regulation of the sale of general insurance. It says PPI review one of its priorities that year.
September 2005: Citizens Advice publishes Protection Racket report identifying problems in PPI market. It issues “Super Complaint” to the Office of Fair Trading over PPI sales.
November 2005: FSA issues its first report on PPI. Identifies poor selling practices and lack of compliance controls in PPI market following company visits and mystery shopping exercises. Writes to all chief executives highlighting key findings.
September/October 2006: FSA fines smaller firms for mis-selling.
October 2006: FSA issues report finding more evidence of poor compliance, 24 companies enter “enforcement procedures” for PPI failings.
October 2006: OFT issues a report on PPI, says it intends to refers issue to Competition Commission.
January/February 2007: FSA imposes fines on major PPI providers for not treating customers fairly.
February 2007: OFT makes formal referral of PPI to the Competition Commission.
September 2007: FSA fines Egg, Liverpool Victoria and Land of Leather over PPI failings.
January 2008: Competition Commission publishes paper on profitability of PPI.
January 2008: FSA imposes more fines on PPI providers.
March 2008: FSA introduces comparative tables for PPI.
April 2008: Competition Commission publishes two papers highlighting further problems in PPI market.
May 2008: Which? publishes research into PPI sold alongside loans. It shows up to 2m people have been sold a policy they will never be able to claim on.
July 2008: Financial Ombudsman Service ask FSA to investigate how firms are handling PPI complaints.
September 2008: Which? publishes research into PPI sold with credit cards, showing that 1.3m people mistakenly believed they would be approved for credit if they took PPI.
October 2008: Alliance & Leicester fined £7m for mis-selling PPI.
January 2009: Competition Commission recommends those selling a loan should not sell PPI at same time. Barclays lodges objection.
February 2009: FSA writes second letter to chief executives, asking them to stop selling single-premium PPI with loans.
May 2009: FSA bans sales of single-premium PPI.
September 2009: FSA launches consultation paper outlining how complaints handling can be improved.
October 2010: Banks seek judicial review of new measures, arguing they impose standards retrospectively.
October 2010: Competition Commission confirms PPI cannot be sold at point of sale.
January 2011: High Court case begins.
The Financial Conduct Authority (FCA) released its latest totals on monthly PPI Claim Payouts. July 2013 totals for PPI repayments was £528 million which brings the total of PPI Claims repayments made sine January 2011 to £11.5 billion.
The figures are collected from 26 firms and financial institutions that made up for 96% of all the Payment Protection Insurance complaints from last year.
Monthly PPI Payouts for 2013
Midlands PPI Claims News
PPI mis-selling Bankers should be charged, says 68% of Midlands residents
A recent survey of East Midlands residents revealed that 7 out of 10 ( 68% ) believe that Bankers should face criminal charges over fraudulenty selling Payment Protection Insurance or PPI.
The survey also goes on to say that 60% of Midlands residents would like to see the Government actually track down people who were mis-sold PPI and start the compensation prceedure before a personal complaint has to be made. 51% also suggested that living relatives of deceased victims of PPI mis-sellling should recieve the money made by the Banks and 25% agreed that in cases where releatives cannot be determined, the compensation should be given to charity.
FCA investigates Two Banks for mis handling PPI Claims
The FCA has confirmed that they are investigating two Banks for mis-handling PPI Claims. This comes after a report last week that the Financial Ombudsman (FOS) has seen an increase of PPI complaints being filed with them.
PPI complaints that are rejected by Banks are typically sent to the FOS for review. Our review of this last week pointed out that the FOS found that 8 out of 10 PPI complaints were upheld by the FOS. This has lead to the FCA stepping in to investigate the two main Banks that are rejecting valid PPI claims from customers.
Banks rejecting legitimate PPI Complaints
The recent increase in PPI complaints being recieved by the FOS is a direct results of Banks rejecting increasing numbers of legitimate PPI complaints being sent to them. The FOS has upheld 8 out of 10 PPI complaints forwarded to them.
This 80% of upheld complaints by the FOS highlights how the Banks are increasingly rejecting valid PPI complaints being made by customers.
A record 86% of all complaints made to the Financial Ombudsman service is about PPI mis-selling. In the first half of the year a reported 266,228 PPI complaints for mis-selling have been lodged.
PPI Claims Service – Midlands, UK
Maple Leaf Financial have a specialist team of solicitors dedicated to dealing with the mis-selling of payment protection Insurance (PPI) products by the banks. We are happy to review these PPI products and to claim compensation for our clients where appropriate.
We will work with you to ensure that you get the correct PPI settlement or refund and any and all fair compensation that may be due to you as a result of PPI mis-selling. We will deal directly with your PPI provider, be it a bank or insurance company and neither we nor our specialist claims team will be fobbed off by them at any stage. If their offer is too low or derogatory and they won’t take us seriously we will challenge them on your behalf.
Tim Capper reports on Financial Mis-Selling for Maple Leaf Financial. Our aim is to ensure you get honest advice and proper guidance to ensure a suitable recommendation can be made to pursue a financial claim
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