PPI FAQs - including exceptional circumstances

To complain about PPI sold with a store card you should check your store card agreement and other relevant paperwork, to try to find the name of the financial business that provided the store card. 

It will usually be quicker to complain to the financial business directly rather than contacting the store.

If you don’t have or can’t find any relevant paperwork you can also contact the relevant store to ask:

• which financial business provided the store card 
• whether the store can forward your complaint to that financial business

You should then be able to follow the steps explained on the following pages. 

A store card is similar to a credit card but can only be used in a particular store, such as a high street shop or department store, or multiple stores in the same retail group.

To complain about PPI sold on a mortgage product, you should start by checking your paperwork from your mortgage provider for any mention of PPI or ‘payment protection insurance’.

PPI on mortgages were designed to cover repayments in certain circumstances where you couldn’t make them yourself. These include if you were made redundant or couldn’t work due to an accident, illness, disability or death.

To complain about PPI sold with a catalogue you should check your catalogue agreement and other relevant paperwork, to try to find the name of the financial business that provided the catalogue.

PPI is now rarely sold but it may be a suitable product in certain circumstances.

There are also other products that can protect you against loss of income, such as income protection products or other types of short-term protection insurance.

Before you buy a policy, you should carefully consider your circumstances and look closely at its features, and terms and conditions.

You can complain about each PPI policy you had.

If you want to complain about more than one PPI policy from the same financial business, you should make this clear in your complaint.

There is no time limit on how far back you can complain about mis-selling of PPI; you can complain however long ago it was sold to you. It is worth considering that most polices were sold between 1990 and 2010, some as far back as the 1970s.

You can complain about the sale of a joint PPI policy.

You may need the signatures of both policyholders to make a complaint and receive a full refund – if you aren’t sure what your provider needs, contact them to ask.

If both policyholders are complaining and want to split any refund and be paid separately, you should be clear about this in the complaint.

If it is not possible to provide both signatures, such as where you are not in contact with the other person, most providers will accept the complaint with one signature but you will only be entitled to half of any refund owed.

You can complain about PPI on behalf of someone else (such as a relative who cannot make their own complaint), as long as that person has authorised you to do so.

The online PPI complaint forms on the websites of many providers include a section for making a claim on behalf of someone else.

You should be prepared to provide evidence that you are authorised to complain on behalf of someone else.

You can complain on behalf of someone who is deceased, as long as you have the legal authority to deal with their affairs.

If someone left a will: a bank or provider may ask to see a copy of the ‘grant of probate’ – and you will probably have to get the consent of all the representatives to look into the complaint. 

If someone didn't leave a will: the bank or provider may ask for a copy of the ‘grant of letters of administration’ – and you may need permission from all the administrators to complain about PPI.

A bank or provider might also ask for some other information – like written confirmation that someone left a ‘small’ estate. 

Some providers have specialist bereavement support, so if you are not clear about the process you should contact the bank or other provider. 

You can complain about PPI while living abroad.

You should be able to follow the same steps as someone living in the UK, such as using an online PPI complaint form on the websites of some providers.

You can also complain by post or on the phone, but will have to pay any additional costs for international post and phone calls.

In most cases, the provider that sold you PPI was the same one that provider your loan or credit product.

If the provider that sold you was PPI was different to the one that provider your loan or credit product, you should complain to them instead.

If you aren't sure which to complain to, you can contact either to ask. If you complain to the wrong provider, they will usually forward your complaint to the right one.

The amount you receive for a successful PPI claim will depend on the amount you’ve paid for the policy and the circumstances of your complaint.

If your PPI was mis-sold, you will generally get back all of the money you’ve paid for the policy, plus interest on that amount.

The average payment for PPI mis-selling in 2018 was £2,004, but it can be much less for some people or much more for others.

If you are being paid back money because of commission earned by a provider, you will only get back part of what you’ve paid for the policy, plus interest on that amount.

These complaints are new, but we think many payments could be in the hundreds of pounds – some will be much less, some may be more.

If your complaint is successful your provider will make a payment to you as quickly as possible.

The payment will be made to you by bank transfer or a cheque.

You will have to pay tax on some of the interest included in your PPI refund and compensation, if you are already a taxpayer or if this takes you above your personal savings allowance for the tax year.

A complaint about the sale of PPI will not change your credit rating, or be recorded on your credit report or credit history.

This is the same whether your complaint is successful or unsuccessful.

MoneyHelper has more on how to check your credit report.

Previously, we had stated that within 8 weeks of your provider receiving your complaint, you should either receive a final response, or a communication outlining when you can expect a final response.

We are now aware that the volume of PPI checking enquiries and complaints sent to firms increased significantly during August 2019 in the run-up to the complaints deadline on 29 August. As a result, firms may not be able to meet their normal complaint handling times. While firms have large operations in place to deal with PPI complaints, a number of them have informed us that you may not receive a final response to your complaint until summer 2020.

If you are entitled to compensation, you will receive interest on the amount you are due (typically 8%). This will include the length of time it took to respond (so you won't lose out financially from any delay).

Your provider should be able to tell you when you can expect their final response to your complaint. It will also explain that if you don't think that the final response is fair you can take your complaint to the Financial Ombudsman Service.

For more information, see our update on PPI complaints handling.

Your provider’s final response should explain:

• whether your complaint has been successful or rejected, and why
• whether they are offering to pay you back any money – and how much
• why they need more time to make a decision, if required
• what you can do if you aren’t happy with the final response, such as complain to the Financial Ombudsman Service

The amount you receive for a successful PPI claim will depend on the amount you’ve paid for the policy and the circumstances of your complaint. The average payment is around £1,700, but it can be much less for some people or much more for others.

Some providers won’t need you to accept the offer before they pay you back any money – if you aren’t sure what you need to do, contact them to ask.

If you are being paid back money because of commission earned by a provider, you will only get back part of what you’ve paid for the policy, plus interest on that amount.

If your response includes an offer to pay you money, and you accept the offer, the money will be paid to you by bank transfer or cheque as quickly as possible.

You may still be able to complain if your provider no longer exists. 

If you think a provider has changed name or changed owner, you should check your paperwork and statements for information about a related bank or other provider that you can contact. 

You should also look online to try to find more information about the change of name or owner. If you can’t find this information or still aren’t sure which provider to contact, you can contact us.

If you think you were sold PPI by a provider that has gone out of business, you may be able to claim on the Financial Services Compensation Scheme (FSCS) – find out if the FSCS can help.

You can now claim back some of the money you've paid for PPI, if the bank or other provider earned a high level of commission from PPI but didn't tell you this at the point of sale.

We introduced new rules that mean banks and other providers have to consider complaints about commission they earned from the sale of PPI. These rules followed a Supreme Court decision in Plevin v Paragon Personal Finance Limited in 2014 (usually just called 'Plevin').

You can now make a new type of complaint following revised rules and guidance the FCA published in 2019.

You could now receive some money back if your provider was taking a high level of commission on your PPI regular premiums but weren't telling you this after the point of sale.

If you used a claims company to complain about mis-selling of PPI, but it was rejected, you may have to pay them a share of any money you receive from a separate complaint about the commission a provider earned from the sale of PPI.

This will depend on the agreement you entered into with the claims company and the cancellation terms. Check your relevant paperwork if you aren’t sure.

A claims company you have used to complain about PPI might contact you to ask if you want them to now complain about commission earned by a provider. You can use the claims company again if you want to, but remember it is a free and simple process to complain yourself.

The FCA became the regulator for CMCs, including those handling financial services claims, from 1 April 2019.

Not all CMCs transferred to FCA regulation - some CMCs chose to stop managing claims instead. If a CMC is currently handling a claim for you, but opted not to be regulated by the FCA, they should have contacted you to explain how to continue your claim.

Visit Using claims management companies for more information.

You can complain about the sale of PPI if you have a debt management plan (DMP).

If your bank or other provider is not a creditor in your DMP, and your PPI complaint is successful, you will receive the PPI refund as normal.

If your provider is a creditor in your DMP, they can keep some or all of the PPI refund, to offset it against the money you owe them in your DMP.

Claims companies

If the business you intend to complain to about PPI is also a creditor, you should be especially wary of using a claims company to complain about PPI.

This is because you may not receive some or all of the PPI refund yourself, but you would still have to pay the fee or commission you owed to the claims company.

MoneyHelper has more information on debt and borrowing.

If you are on a debt relief order (DRO), you can complain about the sale of PPI, but if it is successful during the 12 month moratorium period your DRO may be revoked.

This is because any PPI refund may mean you aren’t eligible for a DRO.

If you still want to complain about PPI, you must tell the official receiver that you want to do so and whether you have previously complained. If you don’t tell the official receiver, the DRO restrictions may be extended and you may be committing an offence.

Claims companies

If you have a DRO, you should be especially wary of using a claims company to complain about PPI.

This is because you would still have to pay the fee or commission owed to the claims company, even though you may not receive some or all of the PPI refund where:

• the official receiver claims some or all of the PPI refund
• the bank or other provider is also a creditor, so can keep some or all of the PPI refund and offset it against the money you owe them

MoneyHelper has more information on debt and borrowing.

If you are on an individual voluntary arrangement (IVA), it is unlikely you will receive any refundfrom a complaint about the sale of PPI, if you owned the policy when the order was made.

This includes if you have been discharged from the IVA.

This is because your PPI policy is considered an asset and therefore is covered by the terms of the IVA.

If you still want to complain about PPI, you must tell the insolvency practitioner that you want to do so and whether you have previously complained. If you don’t tell the insolvency practitioner, you may be committing an offence.

You will also have to tell the provider about your IVA – it is likely the provider will pay the refund directly to the insolvency practitioner.

Claims companies

If you have an IVA, you should be especially wary of using a claims company to complain about PPI.

This is because you would still have to pay the fee or commission owed to the claims company, even though you may not receive some or all of the PPI refund where:

• the insolvency practitioner claims some or all of the PPI refund
• the bank or other provider is also a creditor, so can keep some or all of the PPI refund and offset it against the money you owe them

MoneyHelper has more information on debt and borrowing.

If you have been declared bankrupt or sequestrated (in Scotland), it is unlikely you will receive any refund from a complaint about the sale of PPI, if you owned the policy when the order was made.

This includes if you have been discharged from bankruptcy or sequestration.

This is because your PPI policy is considered part of the bankruptcy estate. The official receiver, insolvency practitioner or trustee therefore owns the policy, and has the right to claim any money owed (unless it has transferred the right back to you).

If you still want to complain about PPI, you must tell the official receiver, insolvency practitioner or trustee that you want to do so and whether you have previously complained. If you don’t tell them, your bankruptcy or sequestration restrictions may be extended, and you may be committing an offence.

You will also have to tell the provider about your bankruptcy, sequestration or insolvency order – it is likely the provider will pay the refund directly to the official receiver, insolvency practitioner or trustee.

Claims companies

If you have been declared bankrupt or sequestrated, you should be especially wary of using a claims company to complain about PPI.

This is because you would still have to pay the fee or commission owed to the claims company, even though you may not receive some or all of the PPI refund where:

• the official receiver, insolvency practitioner or trustee claims some or all of the PPI refund
• the bank or other provider is also a creditor, so can keep some or all of the PPI refund and offset it against the money you owe them

MoneyHelper has more information on debt and borrowing.

It is likely you were mis-sold PPI if you experienced any of the following:

• you were pressured into buying PPI or told you must have PPI
• you were promised a cheaper rate if you bought PPI
• you were told your loan or credit application was more likely to be accepted if you bought PPI
• it was added without telling you
• you were advised to buy PPI that did not suit your circumstances or needs
• you were self-employed, unemployed or retired but advised to buy PPI
• you had a pre-existing medical condition at the time of buying PPI, which may have affected your ability to make an insurance claim
• you were advised that a pre-existing medical condition was included in your PPI policy (or advised that it wasn’t included)
• it was not made clear that you would pay interest on the PPI if it was added to your loan
• it was not made clear that the PPI would end before the loan or credit was repaid

There may be other reasons you were mis-sold PPI.

If you think you experienced one of the examples listed above or were mis-sold PPI in another way, it will make it quicker for your bank or other provider to review your complaint if you say why you think PPI was mis-sold.