How to reclaim mis-sold PPI for free

Payment Protection Insurance (PPI) is supposed to cover your debt repayments if you can’t work, but many policies were mis-sold alongside legitimate financial products.

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1 How do I know if I've been mis-sold PPI

If you took out any kind of consumer loan, store card, credit card or mortgage in the 1990s or 2000s, you may have been mis-sold PPI.

But there’s no need to hand 30% of your compensation to a no-win no-fee claims-management company – use our free tool and template letter to start your own claim and keep 100% of what you’re owed.

Reclaiming mis-sold PPI can be a quick and easy process. Just follow these four simple steps to help you use our dedicated PPI tool before the August 2019 deadline: 

  • Check your eligibility against our PPI checklist.
  • Select the company that sold PPI to you. If you can’t remember who your lender was, check your credit file, which you can do free of charge.
  • Fill in your contact details.
  • Choose the statements that best summarise how you were mis-sold PPI.

Once you’ve done all this, a complaint letter will be generated that will either be automatically emailed to your PPI seller or sent to you to in the post, depending on which company it was.

If your provider isn’t listed in the drop-down menu, or if you would prefer to tailor a letter yourself, you can use our template letter.

2 Use our free PPI tool

Important information – please read

You may not even remember if you had PPI. You can still make a claim if you believe you were mis-sold, regardless of whether you have the following information or not.

You can start your claim by providing just your contact details and sending them to the bank using the form below.

But it’s a good idea to provide as much information as you can upfront, as it will help speed up your claim, so you may also want to include: 

  • your date of birth
  • when and why you believe you were mis-sold the PPI policy
  • the type of product you had – mortgage/loan/credit card/store card/finance agreement.

You should be aware that it is likely your PPI provider will need to contact you to discuss your claim. We recommend including your phone number to speed this process up. 

This tool will not work with a Yahoo or Aol email address. Please use an alternative email address or our PPI template letter.

Which? will use the data you have provided in accordance with our Privacy Policy, and to help identify trends and tackle PPI issues.

If you choose to submit a claim, the information outlined above will be sent to your selected PPI provider who will process any personal information in accordance with their own privacy policy (you can usually find this on their website). If you submit personal information on behalf of another person, you must have their consent to do so. The selected PPI provider may need to contact you or the person for whom you have submitted information using the details supplied in order to communicate about the claim.

Below are some of the most common reasons for how PPI was mis-sold:

  • you weren’t told the insurance was optional
  • you were led to believe your application would be rejected if you didn’t take PPI
  • the policy wasn’t adequately explained to you
  • you had a medical condition that would have excluded you from coverage
  • the insurance wasn’t suitable for you as you weren’t in indefinite full-time employment
  • you were over the maximum age of coverage in the policy
  • you had other plans in place to repay your borrowing if you became unemployed.

If you have or had an individual voluntary arrangement (IVA) in place, you should also let your PPI provider know, as this will help speed up your claim.

3 Your PPI refund

If your complaint is upheld, then the company that sold you the policy should do its best to put you back in the position you would have been in if you had never taken PPI out in the first place.

Regular premium policy

If you have a regular premium policy, such as those attached to mortgages and credit cards, then you should receive a refund of any PPI premiums paid by you and, if applicable, a refund of any additional interest charged to you because of the PPI.

Single premium policy

If you have a single premium policy, such as those often attached to personal loans or finance agreements, then the compensation you receive will depend on whether your loan is still in force or not.

Loan still in force: your lender should calculate what your loan repayments would have been had PPI not been added to the loan and how much should have been repaid so far. Any overpayments you have made will therefore be applied to your outstanding loan, reducing the amount of capital you owe.

Loan no longer in force: you should still receive any PPI payments you made, plus the difference between the redemption figure you paid and what it would have been had you never taken out the PPI policy.

4 Mis-sold PPI statutory compensation

You may also be entitled to statutory compensation, which is usually set at an interest rate of 8% of the money refunded.

This is to make up for the fact that you haven’t been able to use the money during the time you held the PPI – after all, you might have saved or spent it elsewhere.

Important update if your PPI claim has been rejected

Following the Supreme Court ruling in Plevin v Paragon Personal Finance Ltd, you can now make a claim for ‘undisclosed high commission’ on PPI.

This means that if you have already made a PPI claim and it was rejected, you can make a new complaint to your bank about ‘undisclosed high commission’.

If you made your claim after late 2015, your PPI provider should have included ‘undisclosed high commission’ as part of your complaint. It’s a good idea to dig out any paperwork you were sent and double-check.

You can use our free tool or template letter to do this.

5 I'm not sure my PPI compensation offer is fair

If you’re not sure whether the amount you have been compensated is correct, all is not lost. 

Firstly, you should check the factors that can affect the amount you get. For example, did you make a claim on the policy, or do you owe the bank money?

You should also check the assumptions the bank has made. If your bank needed to make any assumptions to calculate your offer, they will have been explained in your letter. 

If you think anything is incorrect or that you have been unfairly treated, your first port of call should be your bank. Read our information on how to check your PPI offer

If you still don’t think the amount in the bank’s final offer is fair, you have the right to contact the free Financial Ombudsman Service to ask a question or challenge a decision from your bank. 

There is no cost involved, but it’s worth noting that, due to the volume of PPI complaints, this process can take a while – in some cases, it may take over a year to decide. 

See our guide on taking a complaint to the financial ombudsman.  

6 Claim before the PPI timebar

The final deadline for starting a new PPI complaint is 29 August 2019. You must start your claim before this date, but you will still be able to appeal a decision after this date if that claim is rejected.

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