Payment Protection Insurance (PPI)

Payment Protection Insurance (PPI) is an insurance product that enables repayment of credit if the borrower is unable to service the debt due to a change in circumstances (e.g., sickness, loss of employment or death).

PPI was widely sold by brokers, banks and other credit providers as an add-on to the credit agreement (e.g. credit card, loan, mortgage, hire purchase, catalogue credit and overdraft).

In the UK 64 million PPI policies were sold. Whilst some date back to the 1970s the majority were sold between 1990 and 2010. ¹

Complaints about the sale of PPI have resulted in lenders repaying more than £33 billion to borrowers.¹

The PPI complaints were originally focused on mis-selling but following the Supreme Court case of Plevin² in 2014 subsequent complaints have been in relation to non-disclosure of high levels of commission and profit share.