I think I’ve been mis-sold PPI – what should I do?

Our research shows that at least two million people may have a PPI policy they’re not eligible to claim on. Read our checklist to find out if you've been mis-sold PPI.

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PPI mis-selling checklist

If you can answer ‘no’ to one or more of the following questions, then you may have been mis-sold PPI.

  • If the insurance was optional, was that made clear to you?
  • Did the adviser tell you about any significant exclusions under the policy – for example, the exclusion that says you won’t be covered for any pre-existing medical condition?
  • If you took out a loan or finance agreement, did the adviser make it clear that you would have to pay for the insurance upfront in one single payment?
  • If you had to pay for the PPI as a single payment, did the adviser make it clear that the insurance cost would be added to the loan and that you would be paying interest on it?
  • Single premium PPI insurance normally only lasts for five years. If your loan or finance agreement was for longer than this, did the adviser make it clear that the insurance would run out before you had finished paying for your loan or finance agreement? The adviser should also have told you that you would continue to pay interest on the insurance premium, even after the insurance expired.
  • If you bought PPI after 14 January 2005, did the adviser try to persuade you to take it out by saying something like ‘We strongly recommend that you consider taking out PPI’? If so, the sale counts as an ‘advised’ sale, and they should have issued a ‘demands and needs statement’ to show why a particular policy has been recommended, and why it is suitable for you. If they didn’t, this is grounds for complaint.

You can use our free tool to reclaim the PPI you’ve paid for.

In Summary

You may have been mis-sold PPI if any exclusions were not explained to you, or if the insurance was optional and this wasn’t made clear to you at the time you purchased it.

Use our checklist to see if you've been mis-sold and if you have a claim. 

If you have been mis-sold PPI, use our free tool to help you reclaim it

Have you had a PPI claim 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 that 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 PPI tool or template letter to do this.

Claims-management companies

Claims-management companies (CMCs), also sometimes called ‘claim handlers’, sprung up fast in the wake of the PPI mis-selling scandal. 

They offer to handle your PPI complaint in exchange for a fee. Which? strongly advises that you consider your options carefully before deciding to use a CMC. 

Putting in a complaint about mis-sold PPI is straightforward, and our free PPI tool will draft the letter for you, so there’s usually no need to pay a company to do the work for you. 

If you do use a claims-management company, it will usually take a cut of any money you are awarded from your claim, sometimes up to 30% of your compensation.

January 2015 Update

From 28 January 2015, the legal ombudsman will be accepting complaints about claims-management companies. 

Read our advice on how to complain to an ombudsman.

Is your PPI compensation offer unfair?

If you’ve applied for a PPI refund and 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 has made assumptions to calculate your offer, these will have been explained in your letter. 

If you think anything is incorrect or you have been unfairly treated, your first port of call should be your bank. 

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 more than a year to decide. 

Read our guide to taking a complaint to the financial ombudsman

PPI deadline

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

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