What is PPI?
Payment Protection Insurance
Payment protection insurance, or PPI, is the insurance that is sold alongside loans, credit cards, store cards and debt products like car finance agreements, that is supposed to cover the repayments if you can't make them.
If you can't make the payments because of an accident or illness that means you can't work, or if you are made redundant, PPI is supposed to step in and cover the payments for a period.
Why should I claim it back?
PPI is high cost for not much return. It brings the banks huge profits and because of this profitability is very often MIS SOLD to customers.
This is when PPI is sold to people who will never be able to claim on it. The conditions of PPI are very tight, so when many people find themselves needing to claim on their insurances they find they are unable to.
PPI will not cover you if you stop working due to a pre-existing medical condition, if you are self employed, if you stop working due to stress or back problems, if you are over 65, if you voluntarily leave your job.
You should also claim it back if you were told / led to believe it was a condition of the loan to take out PPI.
If you notice you are paying for a PPI policy you didnt know you had it may have been added without your consent. You should then claim back your premiums.
How should I claim it back ?
Your claim is dependent on when you took the insurance.
PPI only came under the jurisdiction of the FSA in January 2005.
Any sales made before then are not covered by the FSA rules and cannot be referred to the Financial Ombudsman Service, the body that hears mis-selling cases.
It may still be worth complaining to your lender if you feel you have been mis-sold, and potentially pursue them through the courts, but it may prove more difficult to get your money back.
If you took PPI after January 2005, your claim stands a better chance.
How to Claim
To make your claim you first need to complain to the firm that sold you the insurance. It may be that this firm was acting as the representative of another company. In which case you should write to them.
You should include all the reasons why you believe you have been mis-sold the insurance.
If you are not offered a fair refund from your first letter, write again – citing your grievances again – with a demand that the matter be resolved within 14 days.
If this is not successful, take your complaint to the Financial Ombudsman Service. You will need to repeat your reasons for complaining on a complaint form.
Example letter 1
Example letter 2
Complaint To FOS
WORK IN PROGRESS
Payment Protection Insurance
Payment protection insurance, or PPI, is the insurance that is sold alongside loans, credit cards, store cards and debt products like car finance agreements, that is supposed to cover the repayments if you can't make them.
If you can't make the payments because of an accident or illness that means you can't work, or if you are made redundant, PPI is supposed to step in and cover the payments for a period.
Why should I claim it back?
PPI is high cost for not much return. It brings the banks huge profits and because of this profitability is very often MIS SOLD to customers.
This is when PPI is sold to people who will never be able to claim on it. The conditions of PPI are very tight, so when many people find themselves needing to claim on their insurances they find they are unable to.
PPI will not cover you if you stop working due to a pre-existing medical condition, if you are self employed, if you stop working due to stress or back problems, if you are over 65, if you voluntarily leave your job.
You should also claim it back if you were told / led to believe it was a condition of the loan to take out PPI.
If you notice you are paying for a PPI policy you didnt know you had it may have been added without your consent. You should then claim back your premiums.
How should I claim it back ?
Your claim is dependent on when you took the insurance.
PPI only came under the jurisdiction of the FSA in January 2005.
Any sales made before then are not covered by the FSA rules and cannot be referred to the Financial Ombudsman Service, the body that hears mis-selling cases.
It may still be worth complaining to your lender if you feel you have been mis-sold, and potentially pursue them through the courts, but it may prove more difficult to get your money back.
If you took PPI after January 2005, your claim stands a better chance.
How to Claim
To make your claim you first need to complain to the firm that sold you the insurance. It may be that this firm was acting as the representative of another company. In which case you should write to them.
You should include all the reasons why you believe you have been mis-sold the insurance.
If you are not offered a fair refund from your first letter, write again – citing your grievances again – with a demand that the matter be resolved within 14 days.
If this is not successful, take your complaint to the Financial Ombudsman Service. You will need to repeat your reasons for complaining on a complaint form.
Example letter 1
Example letter 2
Complaint To FOS
WORK IN PROGRESS
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