As we all battle to claim back PPI compensation, it can be easy
to forget how and where the whole PPI mis-selling saga was brought
to light. And so, as Payment Protection Scotland work on claiming
back your PPI premiums, why not browse through the lengthy timeline
and see where the whole thing started…
1998 - 2005
The consumer organisation Which? first raised issues surrounding
PPI back in 1998 in an article in its magazine. Following this,
newspaper such as The Daily Telegraph and The Sunday telegraph also
realised there were issues with product, as well as with the way it
was being sold.
2005
At the start of the year, the Financial Services Authority
(FSA), now called the Financial Conduct Authority, took over the
regulation of general insurance; it placed PPI at the top of its
investigation list.
A few months later, the Citizens Advice Bureau issues it
'Protection Racket' report and makes a super complaints to the
Office of Fair Trading over PPI sales. By the end of the year, the
FSA issues its first report that concurs there are poor selling
practices linked with PPI and along with other findings, they write
to chief executives of financial institutions and banks
highlighting their concerns.
2006
Towards the end of the year, things start to happen now that
investigations have been concluded. Some smaller firms are fined
and there are enforcement notices issues to 24 financial companies
and banks. The Office of Fair Trading, having dealt with the super
complaint from the previous year, find there is sufficient grounds
to refer the case to the Competition Commission.
2007
This year started with a bang with several large, and
well-respected banks and lenders being fined incredibly fines for
wanton mis-selling of PPI, including the Liverpool Victoria
insurance provider and companies such as Land of Leather, who sell
financial credit products on their items.
2008
Ten years on from the complaints raised by Which?, the PPI
mis-selling scandal really gather pace, with more fines and reports
being issued highlighting the poor selling practices of banks and
lenders. Which? adds further fuel to the fire by publishing a
report that shows 2million are paying for a policy that they would
never be able to claim on.
But the banks are dragging their heel and land themselves in
more hot water; as a result, the Financial Ombudsman Service asks
the FSA to investigate how firms and banks are handling PPI
complaints.
Further reports add more damning evidence to the PPI scandal and
more banks and lenders are fined for their role in the mis-selling
debacle.
And the saga continues to rumble, with banks attempting to use
the court system to resolve themselves of blame and not pay
customers back BUT, the rights of the customer have won
through!