What is a PPI Claim?
PPI stands for payment protection insurance. About 10 years ago many people were mis-sold PPI policies when taking out financial products such as loans, overdrafts, car finance, mortgages and credit cards. The insurance was supposed to cover unemployment, sickness, accident or loss of life. Yet this insurance was hugely unnecessary in many cases.
Since then it has been recognised that many PPI policies were mis-sold to people who didn´t need them and massive PPI claims are being paid back every day.
Could you be owed thousands from being mis-sold a PPI?
How do I know if I was mis-sold PPI?
If you have any kind of financial credit agreement you should check if you are paying or have paid PPI. There is no time limit to how far back you can go to claim PPI compensation, but banks are only obliged to keep records for 6 years, so going back further than this may take longer (but you should still persist with your PPI claim).
You may have to check the small print and terms and conditions of the policy as YOU ARE PAYING FOR INSURANCE YOU DON’T NEED is not likely to be written in big red letters!
Some companies had a method of the applicant ticking a box if they did not want to have the PPI. This is a clever marketing method and you may not even have realised you were paying for PPI.
Of course you may clearly remember the meeting or telephone conversation you had with the pushy sales person who insisted you take out the policy. They may have told you that the PPI was a condition of the application for credit, that your credit score would improve or just simply have been a smooth talker who took advantage of your situation. Whatever the reason, if you feel you were mis-sold PPI you should claim asap.
If you can´t remember the conversation as it was too long ago don´t worry. Many telephone calls with financial institutions are recorded. The important thing is to collect all the documentary evidence you can find (old statements etc) and proceed with your PPI claim.
You can also claim for a PPI refund if you later cancelled the PPI but were mis-treated or told you couldn´t cancel the policy.
If you have claimed against the policy (for example you were made redundant), there is still a possibility of you getting some PPI compensation, although it will be harder.
How much PPI compensation can I claim?
This depends on how much you borrowed and how much you paid back. The quickest way to get an approximate figure of how much you are owed is to:
- Find out how much the PPI is/was every month. If this is not clear from your statements you can ask the company who loaned you the money. It is usually about 15% of the monthly payment.
- Multiply this number by the number of months you have been paying.
- This gives you a rough idea of how much you should receive if your mis-sold PPI claim is successful. Interest should also be added to the total.
How do I make a claim for mis-sold PPI?
You have two options:
You can do this yourself for free or you can use a claims company or solicitors, although they will charge a % of the compensation, they will offer no win now fee and handle all the communication and paperwork for you.
How to make a mis-sold PPI claim yourself:
- Check your paperwork to see when you were sold the PPI policy, how much it was for and for how long you’ve been paying it.
- If you no longer have any documents you can ask the company who mis-sold you the PPI to give you the information.
- Do the calculation above to see how much you are roughly owed in compensation.
- Call the company and tell them you want to make a mis-sold PPI claim. They may deal with your request immediately without you having to put anything in writing.
- If you don´t wish to speak to the company look on their website to see if they have a mis-sold PPI claims procedure. Many larger companies such as Barclays do as this was such a common form of mis-selling.
- Alternatively you can write to the company stating that you wish to make a claim for a mis-sold PPI policy, and giving as many details as possible. You should give a brief summary as to why, but keep the information professional.
- Don´t mention an amount you wish to claim for as the company will work this out if your PPI claim is successful.
Claim PPI using a company:
Although the claims company charge a commission, if you are busy and know don't have time to make a claim then it’s a perfectly OK to decide to use a claims company to get your mis-sold PPI money back. Also they can take further action if the lenders refuses to make a payment or you feel the compensation offer is too small. Just make sure the company is regulated by the Ministry of Justice or is a member of a professional body (for example the Law Society of England and Wales, the Law Society of Northern Ireland or the Law Society of Scotland) because they must meet certain standards.
Here are i-Money we have teamed up with Claims Companies who are regulated, offer no won now fee and have very competitive fees. Just complete the form at the top of the page and the will contact you to discuss you claim and calculate any PPI compensation.
My mis-sold PPI claim has been rejected – what can I do?
If this happens, don´t be put off as the next step is to take your complaint to the Financial Ombudsman Service (FSO). The business you have complained to has 8 weeks to deal with your complaint, and the FSO can only act on your behalf after this time.
They will deal with your complaint independently and in an unbiased manner. The FSO exists to help people who are not happy with a response from large and powerful financial institutions.
You will need to complete the FSO’s complaint form, which is on this web page:
The FSO will liaise with the company on your behalf if they feel your disagreement with the rejection is valid.
Your mis-sold PPI compensation claim has been agreed!
That’s great news, but before you celebrate check that the amount you´re being offered is reasonable. Does it coincide with the amount you worked out and has interest been added? If the total is considerably less than you were expecting you can complain again.
In some cases of mis-sold PPI claims the financial institutions acknowledges you were mis-sold a policy but says there was an alternative that would better suit your needs. They may then only offer you a part payment, ie the difference between the mis-sold and the suitable policy. You may wish to challenge this if you don´t agree with the decision.
- Abbey Bank Liverpool Victoria
- Alliance and Leicester Lloyds TSB
- Asda Loans Lombard Direct
- Barclays MBNA
- Black Horse Finance Mint
- Cahoot Natwest
- Coop Loan Norwich Union
- Direct Line Paragon Personal Finance
- Egg Picture Finance
- First Direct RBS (Royal Bank of Scotland)
- First Plus Sainsbury's Bank
- Freedom Finance Smile
- Goldfish Virgin Money
- Halifax Welcome Finance
- Lloyds TSB
- Marks and Spencer
- Nationwide Building Society
- Norton Finance
- Northern Rock
- Norwich Union
- Ocean Finance
- RBS (Royal Bank of Scotland)
- Sainsbury's Bank
- Tesco Finance
- Virgin Money
- Yorkshire Bank