PPI Claims: What Happened and What to Do If You Still Have Questions
Published 12th of December 2012·Updated 16 April 2026
Reviewed by: Reviewed for accuracy April 2026
The deadline for making a PPI (Payment Protection Insurance) claim passed on 29 August 2019. The Financial Conduct Authority (FCA) set this deadline to bring the PPI scandal to a close after more than a decade of complaints and payouts. If you did not submit a claim before that date, you can no longer claim a refund from your bank or through the Financial Ombudsman Service.
Short Summary
The PPI mis-selling scandal was the largest consumer redress exercise in UK financial history. Banks and lenders paid out over £38 billion in compensation to customers who were mis-sold PPI policies alongside loans, credit cards, mortgages and store cards.
PPI was sold as a safety net to cover loan repayments if you lost your job, became ill or had an accident. Many policies were sold to people who could never have claimed on them, including the self-employed, retirees, and people with pre-existing medical conditions.
The FCA's August 2019 deadline was a firm cut-off. The Financial Ombudsman Service no longer accepts new PPI complaints relating to mis-selling or non-disclosure, with very limited exceptions.
If you received a PPI payout and are concerned about the tax deducted from it, you may still be able to reclaim that tax from HMRC, depending on your circumstances.
What was PPI and why was it mis-sold?
PPI stood for Payment Protection Insurance. It was sold alongside credit products throughout the 1990s and 2000s to cover your repayments if you could not work due to illness, accident or redundancy.
The problem was widespread mis-selling. Banks including Lloyds, Barclays, HSBC, NatWest and Halifax added PPI to accounts without clearly explaining what it was or whether it was optional. Many customers did not know they had it. Others were sold policies that were unsuitable for their circumstances, for example policies sold to self-employed people that excluded self-employment from the definition of redundancy.
Can I still make a PPI claim in 2026?
No. The FCA's deadline of 29 August 2019 was a hard cut-off for new PPI mis-selling complaints. Banks and the Financial Ombudsman Service are no longer required to consider new claims submitted after that date.
There are very limited exceptions: if a bank made an error in a PPI payout it already made, or if a separate legal issue has arisen from how a complaint was previously handled, a claim related to that specific matter may still be possible. These circumstances are rare. If you believe you fall into this category, seek advice from a solicitor or Citizens Advice.
Can I reclaim tax on a PPI payout?
Yes, in some cases. When banks paid PPI refunds, they automatically deducted 20 per cent tax from the interest element of the payout (the "statutory interest" that compensated you for being out of pocket). If you are a basic rate taxpayer and the interest was within your personal savings allowance for that tax year, you may have been entitled to receive it tax-free.
You can claim a tax refund from HMRC for overpaid tax on PPI payouts going back up to four tax years. The claim is made using HMRC's R40 form (available on gov.uk). The amount you can reclaim depends on your total income and savings interest in the relevant year.
How much did the PPI scandal cost UK banks?
The total cost of PPI compensation to UK banks exceeded £38 billion, making it the most expensive consumer scandal in UK financial history. Lloyds Banking Group paid out more than any other lender, with provisions exceeding £21 billion. Barclays, HSBC, RBS (now NatWest) and Santander also paid out billions.
The FCA had been receiving PPI complaints since 2011. The volume of claims remained high throughout the 2010s, prompting the regulator to set the August 2019 deadline to bring the process to a conclusion.
What if I am being contacted about PPI claims now?
Be cautious. Scammers frequently target people with claims that the PPI deadline has passed by falsely suggesting that a new window has opened or that they can reclaim money through an alternative route. There is no legitimate new PPI claims window.
If you receive an unsolicited call, text or letter about PPI, treat it as a scam. The FCA warns consumers to be vigilant about PPI-related fraud. Do not provide personal or financial details to anyone contacting you out of the blue about PPI claims.
Frequently Asked Questions
Has the PPI deadline passed?
Yes. The FCA's deadline for submitting new PPI mis-selling complaints was 29 August 2019. Banks and the Financial Ombudsman Service do not accept new PPI claims submitted after this date.
Can I still complain to the Financial Ombudsman about PPI?
The Financial Ombudsman Service no longer accepts new PPI mis-selling complaints. It may still handle ongoing cases or complaints about how a previous complaint was handled, but it cannot consider a new claim about a policy that was not complained about before the August 2019 deadline.
Can I reclaim the tax deducted from my PPI payout?
Possibly. If you received a PPI refund and tax was deducted from the interest element, you can apply to HMRC for a refund of any overpaid tax using form R40. This is a separate process from the PPI claim itself and is not subject to the August 2019 deadline. HMRC allows claims going back four tax years.
Is it worth using a claims management company for PPI in 2026?
No. The PPI claims window has closed and no legitimate claims management company can file a new PPI mis-selling complaint on your behalf. Any company suggesting otherwise is misleading you. If you have a specific ongoing issue related to a previous PPI complaint, a solicitor or Citizens Advice is a better source of guidance.
What were the most common reasons PPI was mis-sold?
The most common reasons included: adding PPI to an account without the customer's knowledge or clear consent; selling PPI to people who were self-employed, retired or had pre-existing medical conditions that would exclude them from claiming; failing to disclose the cost of the policy separately; and pressuring customers into believing PPI was compulsory to obtain the loan.
Where can I find out if I received a PPI payout?
Check bank statements from the period when the payout would have been made. Most refunds were paid between 2011 and 2019. If you are unsure, contact your bank directly and ask them to confirm whether a PPI refund was made to your account and the amount of tax deducted.