If you want to complain about a problem that relates to PPI, you can use Resolver to make the process simpler. Whether you want to find out your rights, who to contact about your issue, or simply raise your complaint, Resolver will help you find the answer.
Type the name of the organisation you have an issue with into the orange box on this page to raise your PPI complaint via Resolver.
Resolver is a totally free tool that connects British consumers directly to the people that can resolve their complaint. Phone using our iPhone or Android apps and you can even record what they say to you.
PPI – Mis-sold PPI complaint
The Resolver PPI reclaim tool has been developed with Moneysavingexpert.com and with the cooperation of leading banks as well as key players in the financial services industry.
Resolver has been working with MSE to create the following rights guide. If you have been directed here from MSE, then you don’t need to read any further. This guide is a summary of the MSE guide which more than six million people have already successfully used.
If you were sold payment protection insurance (PPI) for your loan, you might have the right to make a claim. You are just as likely to receive a pay-out by handling the issue yourself as you are by using a claims management company. The latter will also typically take 30-40% of your claim in fees.
The mis-selling of PPI policies by banks and other financial institutions over the past couple of decades has applied to millions of customers. If you believe you’ve been mis-sold to, you should take the matter very seriously, as you could be owed thousands of pounds.
Just what is PPI?
In simple terms, PPI stands for ‘payment protection insurance’. It’s an insurance product that you can take out to protect you if you cannot make repayments on a loan or credit agreement if you get sick, have an accident that means you’re unable to work, or just lose your job.
It is useful in certain circumstances, but it was widely mis-sold by banks and other financial institutions during the past couple of decades. It was even bundled into some financial products without the customer’s knowledge.
Why PPI was mis-sold
Because it is very rare for a customer to make a claim on a payment protection insurance policy, PPI is hugely profitable. As a result, banks and other lenders put huge pressure on sales staff and heavily incentivised them to sell PPI policies.
Some of the mis-selling was even baked into banks’ and lenders’ systems, especially on some older online loan agreements, where you had to actively opt out of PPI cover.
What sort of products were involved in the mis-selling of PPI?
PPI claims are normally focused on policies sold between the early 90s and the late 00s, but that’s not a hard-and-fast rule.
So if you’ve had a personal loan, a catalogue account, store card, car finance or a credit card during that time period, you may have been mis-sold PPI.
You could also have been mis-sold a PPI policy with your mortgage, but this is less likely to be mis-sold as PPI is potentially most beneficial in the case of mortgages as it ensures you can always make your repayment.
The main reasons you might have been mis-sold
You could have been mis-sold your PPI policy if:
You thought it was compulsory
You may have thought you were required to take out a PPI policy at the time of the loan. This would mean you were mis-sold. Therefore, if the lender was overly pushy, insisted you needed to take out the PPI policy in order to continue with your application, suggested that you would pay more if you didn’t take the policy, or didn’t make it absolutely clear that the policy was optional, you may well have a case.
You were unaware you had the cover
This generally applies to older policies, taken out online before July 2007, where there were often tick boxes that you had to opt out of, as opposed to opt in to, in order to add PPI to your loan.
The policy was inappropriate for you
If you were already covered by another policy, through for example your employment benefits or a policy of your partner’s, then you have a potential case. The same applies if the term of the PPI was shorter than the loan, or you thought the policy covered both you and your partner but in fact only covered one of you.
Self-employed, unemployed or retired
Normally, PPI policies do not cover self-employed people whose businesses go bust (although the situation is slightly different depending on whether you were registered as a sole trader or a limited company).
Similarly, many policies only cover you up to a certain age limit. If you pass that while still holding the policy, your payments should stop, as the cover is not longer relevant for you.
Had past medical problems
A simple one this – PPI policies generally exclude cover for pre-existing medical conditions. If you were not asked about this, and you had a pre-existing condition, this could well affect your policy.
How you can find out if you’ve had PPI
The easiest way to find out if you’ve got PPI is to get in touch with the bank (or other provider of your loan. If your loan was with one of the main banks, it’s likely that they’ll have a specific PPI department.
Alternatively, you can ask your lender which insurance underwriter it used for the PPI and get in touch with them directly.
You can also root through your own paperwork. Look for anything that talks about an ‘insurance fee’, ‘payment cover’, ‘protection plan’, ‘ASU’, ‘loan protection’, ‘retail payment protection’, or ‘loan care’. Basically, anything that sounds like it might be a form of ‘insurance’ or ‘cover’
When you can claim
In theory, you can make a PPI mis-selling claim about a product sold at any time, but the process is simpler if the product is currently active, or has been active in the past six years.
If you started your PPI policy within the last six years, you can make a claim, whether or not you are still repaying the loan.
If you have PPI that ended within the past six years, or which is still ongoing, you can also start a mis-selling claim. The ‘statute of limitations’ means banks don’t need to keep records that are over six years old, but this only applies to policies or loans which ENDED within the past six years.
If your policy ended over six years ago, you can still have a go at reclaiming, so as long as you have your own paperwork (remember, the bank may not have kept records), there is no official cut-off time, although you are less likely to make a successful claim.
How to calculate how much you could be owed
Generally, the amount you pay for loan PPI is about 15% of your balance, but it could be up to 30%. It doesn’t sound much, but it quickly mounts up.
For loan reclaims it could be many thousands of pounds. Yet calculating the actual amount’s difficult and often unnecessary, as the lender will do this for you.
It’s possible to estimate how much the insurance has cost to see what you can reclaim. It then depends whether you’re entitled to the full amount, or just part of it.
One way of doing this is to work out what your monthly loan payment should have been. Use our loan calculator to enter your loan amount, length and APR and compare to what you were paying. Here are some examples – if you were paying more, it’s likely PPI was included.
If you know your monthly PPI cost, simply multiply this by the length of the loan to work out its cost.
If not, you can do a very rough estimate. Work out the total loan cost by multiplying the monthly payments by the loan length, then take 15% off the total. This is a typical insurance cost, though it can be anywhere between 10-30%.
Taking your PPI claim to the Financial Ombudsman Service
If you still haven’t reached a satisfactory conclusion, you can make a formal complaint to the Financial Ombudsman Service
This is the official independent service for settling disputes between financial companies and their customers. The ombudsman is completely free to use, and will adjudicate on whether your complaint should be paid out.
It’ll decide whether your policy was sold unfairly or unreasonably (see some examples). It can only do so once eight weeks have passed from the date of your first complaint, unless your bank sends a final letter within the eight-week period.
The PPI time cap
The Financial Conduct Authority is planning to put a time limit on PPI claims, but this won’t happen until summer 2017 at the earliest. Even then, the stopper will only be put on claims two years after the rules are set… which gives you until 2019 at the earliest.