PPI (Payment Protection Insurance) was sold by banks and building societies and brokers together with loans, mortgages, credit cards and finance as a form of cover in case you were unable to repay the lender through accident, sickness or unemployment
The lenders selling the PPI were ignoring the guidelines set out by the watchdog at the time (FSA) and the needs of their customers. Thousands of people found themselves paying for PPI which they didn’t need, want or even know they had.
So far over £21 billion has been paid in compensation and the financial sector has set aside billions more that is still to be reclaimed. This makes it easily the costliest financial mis-selling scandal of all time!
All figures above show amount calculated after deduction of taxes and fees