What Happened to Payment Protection Insurance (PPI)?
Payment Protection Insurance (PPI) was an insurance product widely sold in the UK, primarily between the 1990s and 2010, designed to cover loan repayments in specific circumstances. It became the subject of the UK's largest financial mis-selling scandal, leading to billions in compensation. While the official deadline for most complaints passed in August 2019, certain avenues for claims, such as those based on high commission (Plevin rule) or through legal action, remain open as of 2026.
Quick Answer
Payment Protection Insurance (PPI) was a controversial insurance product widely mis-sold in the UK, leading to a massive scandal and over £38.3 billion in compensation paid to consumers. The official deadline for most PPI complaints passed on August 29, 2019. However, as of 2026, it is still possible to pursue claims under specific circumstances, such as those related to undisclosed high commission (known as Plevin claims), through individual or group legal actions, or for policies sold by firms that have since failed. The Financial Conduct Authority (FCA) continues to oversee the legacy of PPI complaints and related issues.
📊Key Facts
📅Complete Timeline13 events
PPI Policies Begin to Be Sold
Payment Protection Insurance policies started being sold, often alongside credit products like loans and credit cards.
Consumer Concerns Emerge
Which? magazine first highlighted concerns about the poor value and high cost of PPI policies.
Citizens Advice Bureau Labels PPI a 'Financial Racket'
The Citizens Advice Bureau (CAB) issued numerous complaints about PPI mis-selling, calling the industry a 'financial racket'.
FSA Begins Imposing Fines
The Financial Services Authority (FSA), predecessor to the FCA, began imposing fines on firms for mis-selling PPI, starting with Regency Mortgage Corporation.
FSA Bans Single Premium PPI
The FSA banned the sale of single premium PPI policies, which often added the insurance cost to the loan, incurring further interest.
Banks Lose High Court Battle
The British Banking Association (BBA) lost a landmark High Court judicial review against the FSA, forcing banks to re-evaluate and compensate mis-sold PPI claims.
Plevin Supreme Court Ruling
The Supreme Court ruled in *Plevin v Paragon Personal Finance Limited*, establishing that undisclosed high commission could make a credit relationship unfair, opening a new category of PPI claims.
FCA Confirms PPI Claims Deadline
The Financial Conduct Authority (FCA) published final rules and guidance, confirming a deadline for most PPI complaints.
Official PPI Claims Deadline Passes
The FCA's official deadline for most PPI complaints passed, following a two-year awareness campaign.
Total Payouts Exceed £38.3 Billion
By this date, the total amount paid in refunds and compensation to customers for PPI mis-selling since January 2011 surpassed £38.3 billion.
Supreme Court Decisions Impact Limitation Periods for PPI Claims
The Supreme Court handed down two decisions (including *Smith and another v Royal Bank of Scotland*) impacting whether certain PPI claims are time-barred, potentially allowing an uptick in litigation.
Plevin PPI Claims Remain Possible
Guidance updated in 2026 confirms that Plevin-based PPI claims, focusing on undisclosed high commission, are still a valid avenue for compensation under specific conditions.
FCA Continues Supervisory Work on PPI Legacy
The Financial Conduct Authority (FCA) provides updates on its ongoing supervisory work related to PPI consumer communications and complaint handling, extending beyond the 2019 deadline.
🔍Deep Dive Analysis
Payment Protection Insurance (PPI) was an insurance product sold alongside credit cards, loans, mortgages, and other finance agreements, primarily in the UK from the 1970s, with the largest number of policies sold between 1990 and 2010. It was designed to cover repayments if the borrower became ill, lost their job, or faced other circumstances preventing them from earning income. However, the product became synonymous with widespread mis-selling, often due to aggressive sales tactics, high commissions, and policies being sold to individuals who were ineligible to claim or unaware they had purchased it.
The scandal began to unfold in the late 1990s and early 2000s, with consumer groups like Which? and Citizens Advice Bureau highlighting poor value and mis-selling practices. Regulatory bodies, initially the Financial Services Authority (FSA) and later the Financial Conduct Authority (FCA), began imposing fines on firms for mis-selling PPI in 2006. A pivotal moment occurred in 2011 when banks lost a High Court battle against the FSA, forcing them to reopen thousands of claims and proactively compensate customers. This ruling triggered an unprecedented wave of complaints and compensation payouts, making it the largest consumer financial scandal in UK history.
In 2014, the Supreme Court's decision in Plevin v Paragon Personal Finance Limited introduced a new dimension to PPI claims. This ruling established that if a significant portion of the PPI premium was commission, and this was not disclosed to the customer, the credit relationship could be deemed unfair, even if the policy itself was suitable. This 'Plevin rule' opened up a new avenue for compensation, particularly for those whose initial mis-selling claims had been rejected or who were previously unaware of the high commission.
The FCA set a final deadline of August 29, 2019, for most PPI complaints, accompanied by a nationwide awareness campaign. By this deadline, over £38.3 billion had been paid out in refunds and compensation to customers since January 2011. While the primary complaint window has closed, the legacy of the PPI scandal continues. As of July 2026, individuals may still pursue Plevin-based claims, initiate individual or group legal actions, or claim compensation through the Financial Services Compensation Scheme (FSCS) if the firm that sold the PPI has since failed. Additionally, many individuals who received PPI payouts are eligible to reclaim tax automatically deducted from the statutory interest portion of their compensation. The FCA continues its supervisory work related to the handling of PPI complaints and the broader implications of the scandal.
What If...?
Explore alternate histories. What if Payment Protection Insurance (PPI) made different choices?