Payment protection insurance explained

Payment protection insurance (PPI) was usually sold with products that you need to make repayments on, like a loan, credit card or mortgage. Find out more about PPI and how to check if you had a policy.

What is PPI?

PPI was designed to cover repayments in certain circumstances where you couldn’t make them yourself. These include if you were made redundant or couldn’t work due to an accident, illness, disability or death.

As many as 64 million PPI policies have been sold in the UK, mostly between 1990 and 2010.

But we found that PPI was often mis-sold. More than £27bn has already been paid back to people who complained about the sale of PPI.

There is also a new reason to complain, about commission earned by a provider, following a court case known as ‘Plevin’.

If you had PPI you can complain yourself – for free – and claim back money you’ve paid for the policy or policies.

Products sold with PPI

You might have had PPI if you’ve taken out or used loan or credit products, such as:

  • loan – this includes personal loans and business loans
  • credit card
  • store card – this is usually from a high street store (find out more about store cards below)
  • mortgage 
  • loan secured on your home in addition to your mortgage​​​​​
  • overdraft
  • car finance or something else bought on credit, such as a sofa – this may have been called a ‘finance agreement’ or ‘hire purchase’
  • home shopping account – this includes a catalogue account

What you can do next

If you’ve had one or more of the products listed above but are not sure whether you also had PPI with them, there are steps you can take to find out.

The following pages will help you to:

  • check your paperwork for PPI policy details or other information
  • contact a bank or other provider to ask if you had PPI

By ‘provider’ we mean the financial business that sold you PPI, which was usually the same bank or other provider of your loan or credit product (though sometimes the financial business that sold PPI, and the provider of the loan or credit product, were different).

PPI quick answers

The FCA and PPI

The FCA regulates financial businesses in the UK, including banks, lenders and other financial service providers.

We found that PPI was often mis-sold

We have introduced new rules around the commission a bank or other provider earned from the sale of PPI, following a court case often called ‘Plevin’.

The new rules mean you can also:

  • complain even if PPI was not mis-sold to you
  • complain even if you had a previous complaint about mis-selling of PPI rejected

Find out more about the FCA and PPI.

Deadline for PPI complaints

We have set a deadline of 29 August 2019 to complain about the sale of PPI.

Your bank or other provider must receive your PPI complaint by 29 August 2019 – otherwise your complaint will not be considered.

You should act as soon as possible. Although 29 August 2019 is the general deadline for PPI complaints, you may have less time to complain about mis-selling if you:

  • received a letter from your provider about the way PPI was sold to you – most of these letters were sent between 2012 and 2015
  • made an insurance claim on your PPI policy that was rejected by the insurer

If you aren’t sure how long you have to complain, ask your provider for more information as soon as possible.

Find out more about the PPI complaint deadline.

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