Central Bank Review of PPI Policies


On 3 October 2013, the Central Bank of Ireland provided an update on the current review of payment protection insurance (PPI) sold from 1 July 2007 to 30 June 2012. The usual purpose of PPI is to assist a policyholder in meeting their repayment commitments where the policyholder:

  • Suffers from critical illness
  • Is involved in an accident
  • Is rendered unemployed

PPI was typically sold with personal loans, credit cards and mortgages.

  1. The review included 350,000 policies (so far half of these have been reviewed).
  2. The Central Bank notes that 20% of policies sold have been found to be in breach of the Consumer protection code.
  3. To date €25 million has been identified as refundable to customers that were miss-sold PPI.
  4. Most of the refunds are said to be small, though some could be for approx. €2,500.

The financial institutions that miss-sold PPI must write to all affected customers and offer them a choice of refund or retention of their PPI policy. Any refund will include compensatory interest.

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