The PPI Scandal: What Happened And When
Nearly everyone who has taken out a credit card, mortgage or loan will surely know a fair bit about the mis selling of PPI by now, but they may not know how news of the scandal broke and the dramatic sequence of events which ensued. Here’s a brief timeline of PPI’s fall from grace:
Which? magazine flags PPI as being a poor-value product because of expense and exclusions.
Problems associated with PPI are highlighted in a number of broadsheet newspapers, including The Daily Telegraph and The Sunday Telegraph.
FSA prioritises a review of PPI as it takes on the regulation of the sale of general insurance. vSept 2005: “Super Complaint” issued to the Office of Fair Trading over PPI sales by Citizens Advice following the publication of its Protection Racket on the issue.
In its first report on PPI, the FSA identifies poor selling practices and lack of compliance controls following mystery shopping exercises. The key findings are put to all chief executives.
Small firms fined by FSA for mis selling.
24 companies enter “enforcement procedures” for PPI failings following a further FSA report.
Major PPI providers fined by FSA for unfair treatment of customers.
Egg, Liverpool Victoria and Land of Leather fined by FSA over PPI failings.
Competition Commission publishes paper on profitability of PPI, while FSA imposes yet more fines on PPI providers.
Comparative tables for PPI introduced by FSA.
Further problems in PPI market revealed in two papers published by Competition Commission.
Which? claims that up to two million people have been sold a policy they will never be able to claim on.
FSA asked by Financial Ombudsman Service to investigate how firms are handling PPI complaints.
Which? reveal that 1.3m people mistakenly believe they would be approved for a credit card if they took PPI.
Alliance & Leicester fined £7m for mis-selling PPI.
Barclays object to Competition Commission’s recommendation that PPI should not be sold alongside a loan.
FSA asks banks to stop selling single-premium PPI with loans.
Sales of single-premium PPI banned by FSA.
Banks argue that new measures impose standards retrospectively.
Competition Commission confirms PPI cannot be sold at point of sale.
High Court case commences.
High Court judge rules against banks.
After initially deciding to challenge the ruling, Lloyds Banking Group withdraws, instead seeking to "draw a line" under the affair.
British Bankers' Association decides also decides not to appeal.
Heard enough? Do you hope that a successful claim on your behalf may be a happy conclusion to this unsavoury sequence of events? Why not give us a call on our 24/7 hotline, 0800 043 2027, to request a PPI reclaim pack, or talk through your case with one of our expert advisors to see if you will be entitled to a PPI refund (and if so, how much!).