The 11:59pm deadline on Thursday brings to an end eight years of claims from consumers who were mis-sold the insurance alongside loans, mortgages and credit cards.
The insurance was designed to cover loan repayments for a certain amount of time if the borrower fell ill, lost their job or had an accident that left them unable to repay. However, it was mis-sold on a large scale due to a combination of profitability for the lenders offering it, and highly-pressurized staff incentives. In some cases, borrowers were unaware they were being sold it.
According to consumer watchdog Which?, the price of the policy could reach up to 25% of the loan, but Citizens Advice found that borrowers who would need to take out the insuranceOne example of the thousands of adverts to have bombarded British consumers to claim compensation for PPI. Questions had been raised about the product as far back as the late nineties, but problems came to ahead in 2005 or so, when the Financial Services Authority, now the Financial Conduct Authority , stepped up its scrutiny of PPI. The next year, it began issuing small fines to lenders who were found to be mis-selling it and, in 2009
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