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. You can use our template letter or dedicated PPI tool to start your claim before the August 2019 deadline.

2 Use our free PPI tool

If your provider isn’t listed below, or if you would prefer to tailor a letter yourself, you can use our PPI template letter

If you can’t remember who your lender was, check your credit file, which you can do free of charge.

Start your PPI claim

Keep 100% of your compensation, use our free tool to send your PPI claim to your provider. Choose the provider you want to claim against below.
If your provider isn't on the list above you can use our template letter and send your claim yourself.
PPI template letter

3 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.

4 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.

5 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.

6 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.  

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