Payment protection insurance (PPI)

Payment Protection Insurance (PPI) was introduced to protect customer payments on loan or credit products should they be unable to repay them because of illness or unemployment.

If you purchased a PPI policy and the information you were provided was misleading or insufficient, you could have a claim.

You can find out more about PPI claim eligibility online with FSCS.

FSCS can pay PPI claims in relation to failed firms and you can make a claim online here. Making a PPI claim directly with FSCS is completely free.

Firms FSCS has paid PPI compensation for

FSCS has paid out claims for a number of failed firms including:

Plevin PPI claims

You may be able to make a complaint if there was commission earned by a provider, for example the bank who provided your loan, for the sale of PPI to you and you were not told about it. This is often called a ‘Plevin claim’, named after the court case about this issue.

 As a result of the sale of PPI to you, the bank or other provider may have received ‘commission’ as part of its agreement with the insurer. If you had PPI, the money for this commission payment would come from you, out of the sums you paid for the PPI policy.

If the bank or other provider earned a high level of commission from the sale of PPI and you were not told about it when you bought PPI, you may now be able to claim back some of the money you paid for your PPI.

The FCA has indicated that a ‘high level of commission’ typically means that the bank or other provider received an amount of commission that was more than half of what you paid for your PPI policy.

As of 1st August 2018, there are three providers, or failed firms that FSCS accept claims for, they are:

Making a PPI claim online with FSCS

The quickest and easiest way to make an FSCS PPI claim is online. Make a claim online using the FSCS Online Claims Service.

PPI Deadline

If you are entitled to PPI compensation, you have until 29th August 2019 to claim.

Find out more about PPI on the Financial Conduct Authority website here.


Jargon Buster

FCA

The Financial Conduct Authority is the UK's regulator for the financial services industry.