Even when they were not in a situation to ever be able to claim on it, payment Protection Insurance (PPI) has been sold to millions of borrowers alongside loans. While some customers found their PPI policies useful, a vast percentage of those with PPI policies have found to have had them wrongly sold by their banks.
To compensate clients who had policies mis-sold to them, industry regulators have pressurised banks, and the outcome of the judicial review confirmed that the responsibility fell to the banks to ensure that compensation was given to wronged consumers. The result is that the banks are now facing substantial costs in order to meet their legal responsibilities.
According to estimates, over 10 billion Payment Protection Insurance (PPI) policies have been sold and as many as 30 million policy holders have a claim for compensation.