Only one more year til those PPI cold calls stop – but in the meantime, you might be able to claim back not just on the policy but on the commission, too.
What it means: Recap - in the 1990s, banks started selling 'payment protection insurance', or PPI, alongside loans, credit cards and mortgages. It was supposed to cover your back if you fell ill or lost your job.
But banks often didn't explain how it actually worked, pretending it was compulsory or just adding it onto customers' bills without saying anything. Since then, in the biggest compensation exercise in UK financial history, millions have claimed back money for being mis-sold the policy.
Now, a couple has become the first to claim back not on the policy they were sold (which was one of the fine ones) but on the commission. A court ruled that people charged over 50% commission could claim that back too. This couple was charged 76%, and the average commission was 67%... so this sets an expensive precedent for a lot more commission claims to come.
