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PPI Explained

Payment Protection Insurance (PPI) was created to assist people with their loan repayments, to cover loan, credit card or mortgage payments should they fall ill or lose their job.

The basis of this insurance sounds like a great idea, whereby you pay a little extra each month to try to ensure your repayments will always be met, regardless of what unforeseen challenges may be around the corner.

The truth however, is that thousands of customers who took out loans, mortgages or credit cards from their lender or broker were mis-sold PPI. The Citizens Advice Bureau estimated that up to 80% of these policies could have been mis-sold, with the cost of this PPI adding a staggering 13 to 56% to the cost of the loan.

In May 2011 the banking industry abandoned a legal fight over the mis-selling of payment protection insurance. The British Bankers Association, which fought the case, said it would not appeal after losing a court challenge against rules on mis-selling.

Barclays then announced that it had set aside £1billion to pay compensation, HSBC £269 million, while Royal Bank of Scotland added £850 million to the £200 million it has already paid or provided for. The largest offender was Lloyds, who made a £3.2 billion provision for possible claims.

Back in 2008, the Financial Services Authority (FSA) imposed a record £7 million fine on Alliance & Leicester for serious failings in the sales of Payment Protection Insurance. Between January 2005 and December 2007, Alliance & Leicester sold around 210,000 PPI policies to its customers, with the average policy costing £1,265. Other fines imposed by the Financial Services Authority for the mis-selling of PPI include:-

HFC Bank: £1,085,000 (part of HSBC)
GE Capital Bank: £610,000 £455,000
Redcats (Brands) Ltd: £270,000
Hadenglen: £182,00
Capital One Bank: £175,000

Source: Financial Services Authority

Do you have PPI?

Your loan documents or annual loan statement will show whether you have Payment Protection Insurance. Credit card protection shows as a monthly payment on your statement. Banks and lenders use many different names to describe PPI such as Loan Protection, Loan Cover, Accident Unemployment Insurance - but no matter what they call it, if you have been mis-sold payment protection insurance we can help you claim it back.

No Obligation Assessment

Direct Redress is here to help you achieve the best possible outcome, if you have been mis-sold.

For a free, no obligation assessment, to find out if you could have been mis-sold PPI, simply contact us and we'll be more than happy to help you find out if you have a claim.


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Why choose us


If you took out any type of loan, credit card or mortgage in the last 10 years, you could have been, or may still be paying for Payment Protection Insurance (PPI) you did not need, never wanted or in many cases do not even know about.

  • No upfront fees
  • Strictly No Win No Fee
  • Open and honest appraisal
  • We find the best outcome
More Reasons to Choose Us

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Signs of Mis-selling

  • You were told you had to take insurance in order to be approved for the loan.
  • Your lender added insurance to your loan without finding out if it was actually required.
  • You were told you couldn't buy insurance elsewhere.
  • Your lender added loan insurance without you knowing about it.
  • You weren't told the lender might earn commissions from selling you your loan
  • The lender increased your loan without telling you.
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