When was payment protection insurance first introduced

In the case of one insurer, the percentage was only 1. Initial findings of the study also indicate that the amount of the commissions is rarely set out clearly. High remuneration may also induce vendors of such insurance policies - who in many cases also act as vendors of consumer credit - not to make the client's interests their chief concern. In the course of its study, the FSMA not only examined the clarity of the general terms and conditions and the transparency of the cost structure, but also verified the quality and transparency of the advertisements.

This second aspect of the study has not yet been completed; its results will be communicated at a later date. You must complain to the ombudsman within six years of the event complained about, or three years after you first became aware that you may have grounds for complaint, whichever is longest.

For example, if you were sold PPI in , you may still be able to take your complaint to the Financial Ombudsman Service if you only became aware of the possible mis-selling last year.

If your PPI policy has expired, you may still be able to claim, as the provider still may have broken the rules on mis-selling. The sale of PPI policies are predicted to shrink dramatically; some banks have even stopped selling them altogether.

Separately, the Competition Commission is bringing new rules that will stop lenders selling PPI at the point where they grant a loan.

Discover ways to avoid being scammed and find useful consumer tips and hints. BBC One Watchdog. Main content. Related links:. Or, as the Guardian explained last year : "Even if the paperwork was immaculate, you have excellent grounds for a refund plus interest, if you can show you could never have claimed on all, or part, of the policy.

Many of Guardian Money's own successes are based on this. The 'protection' most heavily sold is the promise of a payment when you are unemployed. But sellers often don't bother to ask about your employment status. It stated:. PPI could not be sold until at least seven days after the loan was agreed. Borrowers must be given a personalised quote, detailing costs and cover. Customers had to be told in writing that PPI was an optional extra.

PPI sellers had to state how many customers were successful in claiming on their policies. For example, if you are out of work due to an illness that is not covered by the policy, then you will be unable to make a claim. Some policies pay out if you are made redundant but on certain conditions, for example a policy may not pay out if you take voluntary redundancy. Speak to your lender: if you are unable to work and wish to make a claim on your PPI, contact your lender to discuss the next steps.

You may be requested to complete a claims form. Remember to complete the forms as accurately as possible to avoid delays or refusal of your claim. If you are unsure of any information requested on the form contact the lender. Get your paperwork in order: when making a claim on a payment protection policy, you may be required to submit documentation to support your claim. Examples may include medical certificates, medical assessments, proof of redundancy etc.