Payment Protection Insurance Collapse Compensation
Published / Last Updated on 04/12/2024
Payment Protection Insurance (PPI) firms and advisers that are authorised by the Financial Conduct Authority (FCA) are protected from firm collapse by the Financial Services Compensation Scheme (FSCS).
What is PPI?
PPI is an insurance policy that you usually took out with a loan to protect loan repayments (usually bank loans, credit card or mortgage payments protection) if you are unable to pay them if you become ill, are made redundant, or have a serious accident.
Can I still claim for PPI mis-selling?
In some cases, people were mis-sold PPI and have tried to get a PPI premiums refund plus interest. This was much publicised with the FCA PPI claims window closing on 29 August 2019. This was the latest date for you to complain and seek compensation for premiums paid on policies that were never suitable for you (or would never pay out e.g. if self employed) from firms that were/are still trading at that point. All PPI firms were required to review and compensate all affected clients. At the time, you could also get compensation if the firm earned commission for the sale of PPI and didn’t tell you about it.
Failed PPI Firms: The FCA PPI claims window has closed but this does not mean you cannot make a compensation claim with the FSCS when firms have failed/closed. There is no deadline.
- You can only make a claim with the FSCS if you were advised to take out PPI cover after 14 January 2005 (not if you bought it without advice).
If the adviser firm failed between 14 January 2005 and 1 January 2010
- FSCS protection is 100% of the first £2,000, per eligible person per firm, then 90% of the remainder.
If the adviser firm failed/fails after 1 January 2010
- FSCS protection is 90% of the total claim.
Check Protection Now
- What does the FSCS cover? https://www.fscs.org.uk/what-we-cover/
- FSCS and ‘PPI Advice’ https://www.fscs.org.uk/what-we-cover/ppi/
