If you were mis-sold payment protection insurance (PPI) you could be paying for a policy you do not need or that does not protect you.
It’s free to make a claim yourself. You would then receive all of any refund you are entitled to. If you decide to use a claims company they will likely charge you. Find out more on claims companies.
Four steps to claiming mis-sold PPI
- Check if you had PPI and how it was sold to you
See below for checking your policy, how it may have been sold to you and our mis-selling checklist.
- Make the claim yourself
You can do this for free, by writing to your company using one of the many free templates that are available, including the Financial Ombudsman Service’s template form.
- Your company’s response to the claim
The company has eight weeks to provide a final response to your complaint, telling you whether or not it has been successful or why they need more time to look into it.
- Contact the Financial Ombudsman Service
If you do not get a final response from the firm within eight weeks, or are not happy with the decision, the Financial Ombudsman Service may be able to review your case.
The Financial Ombudsman Service will ask your firm to explain why it made its decision and then decide whether to uphold your complaint.
It is important that you contact the Financial Ombudsman Service within six months of receiving a final response from your firm, or the Financial Ombudsman Service may not be able to deal with your complaint.
Have you taken out PPI?
Check your policy
If you have bought a loan, mortgage, credit card, check your current or past paperwork to see if the cost of PPI may be included on your statements.
On statements, PPI may also be called ‘loan protection, credit insurance, loan repayment insurance, ASU (accident, sickness and unemployment) insurance, account cover or payment cover.’
Check with your company
If you are still unsure, check with the lender that sold you the product.
Were you mis-sold PPI?
If you can answer 'yes' to any one of these questions, you may have been mis-sold PPI:
- Were you pressured into buying PPI?
- Were you told you must have PPI?
- Were you advised to take out PPI that did not suit your circumstances?
- Were you promised a cheaper rate or a better chance of acceptance of the loan or credit, if you took PPI?
- Was PPI added without telling you? Some agreements added PPI automatically with pre-ticked boxes so you had to opt out, not in
- Were you self-employed, unemployed or retired but advised to take PPI?
- Did you have a pre-existing medical condition?
- Were you advised if this condition was (or was not) included in your PPI?
- Was it not made clear that you would pay interest on the PPI if it was added to your loan?
- Was not it made clear that the PPI cover would end before the loan or credit was repaid?
There are other reasons why PPI may have been mis-sold. If you are still not sure whether your policy was mis-sold you should contact the Financial Ombudsman Service.
While making a claim is a free, straightforward process that you can do yourself, claims companies - also known as claims management companies (CMCs), claims firms or handlers – may approach you offering to submit a PPI claim for you. They will likely charge for this service.
This charge will likely either be an upfront cost or on a ‘no win, no fee’ approach to getting your money back for you. This could be 30%, for example, so out of a £5,000 refund, you would have to pay £1,500 to the claims management company. Carefully consider if you need this service as opposed to submitting your own claim directly for free.
Free help and template letters
You can download a free PPI claim form template from the Financial Ombudsman Service. If you are still stuck, call the Financial Ombudsman Service on 0800 023 4567 and it can help you fill the form in.
If you were sold credit by a firm that no longer exists, help is available. Contact the Financial Services Compensation Scheme.
If we haven’t answered your specific PPI question, you can visit the Money Advice Service. It offers free information and tools.