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Scotland Wide PPI Specialists

PPI Mis-Selling – A Long-Running Scandal

29 April 2019

The PPI mis-selling scandal has gone on for so long that it is hard to remember where it all started. But, with the deadline of 29th August 2019 announced, we know when it should end…


1998 - consumer magazine Which? produces an article criticising the poor value for money, expense and exclusion under a PPI policy. Problems continued to be highlighted by newspapers and journalists.

2005 - the responsibility for regulating the sale of insurance falls to the then Financial Services Authority (FSA) and makes PPI a priority.

In September of the same year, the Citizens Advice form a super-complaint entitled 'Protection Racket' highlights the unfair selling of PPI. The Office of Fair Trading takes on the complaint.

In November, the FSA produces its first report on PPI that identifies poor selling practices and lack of compliance.

2006 - in the closing months of this year, the FSA fines smaller firms for mis-selling PPI. It also produces another report on PPI and places 24 financial companies under 'enforcement procedures' linked to PPI failing.

In its response to the super-complaint, the Office of Fair Trading refers the mis-selling of PPI to the Competition Commission.

2007 - more fines are imposed during the year as a result of banks not treating customers fairly. This includes the Egg credit card providers as well as Liverpool Victoria and Land of Leather.

2008 - the pace begins to pick up in relation to PPI as the FSA and Competition Commission are now both active in taking a closer look at the product itself and the way in which it was sold. Some compensation cases have started but the Financial Ombudsman Service are unhappy with how banks are handling the complaints. As a result, it asks the FSA to look further into the matter.

More reports come to light such as Which? discovering that 1.3 million customers mistakenly believed that they would be approved for credit if they took PPI.

In the same year, Alliance & Leicester were fined £7 million for mis-selling PPI.

2009 - the Competition Commission suggests that anyone selling a loan should not sell PPI at the same time. Barclays is unhappy at this suggestion and lodges objections.

During the year, the FSA writes to CEOs of financial companies asking them to stop selling single-premium PPI policies. Around the same time, the FSA also launches a consultation to look at complaints regarding how PPI claims are being handled.

2010 - the banks are unhappy and with pressure on mounting, they formally launch objections which results in a judicial review. Critics accuse the banks of 'playing for time' and attempting to stem the tide of PPI compensation claims that will be coming their way.

2011 - the judicial review begins and ends with the banks told they must pay compensation when PPI has been mis-sold to a customer, placing them 'back in the position they would have been if they had not had PPI'. The banks initially attempt to resist but soon realise that they are out of options and PPI compensation begins…

2019 - the PPI deadline of 29th August is coming fast. Have you made your claim?