The UK Financial Services Authority is currently managing a massive process to compensate consumers who were “mis-sold” payment protection insurance (their equivalent of consumer credit insurance).

The claims relate to circumstances where people say they were sold PPI but:
• did not know they had been sold it
• would not have been able to claim under the policy due to exclusions or limitations (for example a number of policies did not provide cover for people who were self-employed), and
• did not need the policy as they had sufficient cover elsewhere.

Banks and other lenders sold PPI to their customers without fully explaining what it covered. In the worst case scenarios, the banks/lenders lied to customers by telling them it was a compulsory element of a loan, or they simply added it without the borrowers’ consent.

A total of £410.3m was paid in April 2014 to customers who complained about the way they were sold PPI. This takes the amount paid out since January 2011 to £15.1bn.

You can see our video on the Australian law for CCI for Lenders here.