PPI: how to claim if you’ve been mis-soldHow to claim compensation

If you think you have been mis-sold PPI you should make a complaint to the firm that sold you the insurance, stating why you think the PPI was mis-sold.

So if you're not sure, first follow these steps to work out if you were mis-sold.

Start your claim

To make a complaint, just follow our three simple steps:

1Who to complain to?

If you’re not sure which firm to complain to about your PPI, look at the documents you were given at the time you took out the mortgage, loan, credit/store card or credit agreement. In most cases the firm that set up the credit arrangement will be responsible for the sale of the insurance policy.

If in doubt, ask your lender or the finance company that set up the credit agreement. Tell them you want to make a complaint about the PPI sold to you and ask them who you should write to.

When you’re asking for this information, you’ll need to give your name, address, any reference number of your loan and the policy number of the PPI – all the information is on your documents.

2Template letter of complaint

Use this template letter to send a complaint to your lender:

[INSERT TODAY’S DATE]
[INSERT YOUR NAME AND ADDRESS]

[insert name and address of the firm that sold you the insurance and address it to the Complaints Manager]

Dear Sir/Madam,

Re: [insert your credit reference number and the policy number of your PPI e.g. Personal Loan reference ABCDEFG / Payment Protection Policy No: 123456]

I purchased the above policy from you in [insert month and year] in connection with the [mortgage/loan/credit card/store card/finance agreement] referenced above.

I believe that I was mis-sold this policy for the reason(s) given below, and wish you to investigate my complaint according to your normal complaint procedures.

[insert one or more of the following bullet points – whichever point(s) refer to you. Delete any points which are not relevant to you.]

I was not told that the insurance was optional.

I was led to believe that my application for credit would be rejected if I did not take out the insurance.

The policy exclusions were not explained to me either before or at the time I took out the insurance. I was therefore unable to make an informed decision as to whether this insurance was appropriate for me.

I now believe the insurance was unsuitable for me as I was suffering from [insert name of any medical condition you had at the time you took out the policy] at the time I took out the policy and was not made aware of the specific exclusion which relates to pre-existing medical conditions.

I now believe the insurance was unsuitable for me as I was [self employed / unemployed / in temporary employment / on a fixed term contract/retired ] at the time I took out the policy and was not made aware of the specific exclusions relating to unemployment cover.

The policy was unsuitable for me as I was over the maximum age of [insert maximum age].

It was not explained to me that the policy premium would be paid upfront as a single premium and would be added to my debt and attract interest.

The insurance [has expired / will expire] before my loan/credit agreement ends which means I [am paying / will be paying] interest on a policy which is no longer in force. This was not made clear to me at the time the policy was sold to me.

If my complaint is upheld I require a refund of all premiums paid to the policy, plus any additional interest charged to me because of the PPI. I would also like to claim statutory compensation in view of the fact that I have been deprived of the use of this money.

Please now investigate my complaint within the eight weeks allowed to you.

Yours faithfully

[SIGN YOUR NAME]
[TYPE YOUR NAME]

3See how your lender reacts

Under Financial Services Authority (FSA) rules the firm has 8 weeks to investigate your complaint after it receives it - you should be sent an official acknowledgement before then.

It must write to you in this time whether it has upheld or rejected your complaint.

If you don’t hear anything by the end of the 8 weeks, or if your complaint is rejected, you can take your case to the Financial Ombudsman Service.