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.

You need to refer your complaint to your provider or to the Financial Ombudsman Service on or before the 29 August 2019 deadline (by 11.59pm) or else lose your right to have your complaint assessed.  

You shouldn’t wait until 29 August 2019 - act sooner rather than later to check if you had PPI and decide whether to complain. 

29 August 2019 is the last possible deadline for consumers to make PPI complaints, but for some consumers time will run out sooner than 29 August 2019

  • you will generally run out of time to complain about mis-selling 3 years after you received a letter from your provider warning you about it
  • or 3 years after you made an insurance claim on your PPI policy that was rejected by the insurer

You will need to obtain an acknowledgement that your complaint was received by your provider or the Financial Ombudsman Service. We suggest you do this before the deadline.

Remember if you complain via:

  • post - allow enough time for the complaint to reach your provider before the 29 August 2019
  • telephone - be aware that phone lines will close before midnight 
  • online - please submit your complaint in advance to avoid any delays because of an increase of submissions close to the deadline

Find out more about the PPI complaint deadline.

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