A new twist in the Payment Protection Insurance scandal

Magazine Issue:

Reinsurance, an indestructible market [3]

Magazine date:

Oct 2014

The financial authorities have required that banks, credit card companies, and lenders review 2.5 million consumer complaints for alleged abuse during the sale of Payment Protection Insurance (PPI).

Used with permission from Microsoft Office Marketed in the years 1990 to 2000 by various lenders, the PPI contained provisions making them useless when borrowers legitimately made recourse to them. Other consumers have been forced to contract these insurance covers without their consent.

The 2.5 million complaints which date back to 2012 and 2013 would not have been adequately addressed or have not resulted in sufficient compensation. Nearly 13 million cases had been previously studied, costing 20 billion EUR (27 billion USD). Hence, the bill is poised to increase.