You are here: Home - Credit Cards & Loans - How to -

The Your Money guide to claiming PPI

Written by:
This guide will help determine whether you were mis-sold PPI – and show you how to easily and effectively secure yourself compensation.

How do I know if I was mis-sold PPI?

Banks and other lenders sold somewhere in the region of 45 million PPI policies between 1990 and 2010, packaging the policies with loans, mortgages and credit cards.

As a result, if you took out a mortgage, credit card or loan during that two decade window, there’s a strong possibility that you were mis-sold PPI.

If possible, check any mortgage, credit card and loan agreements you have from this period. See if one of the following terms (or similar) appear on the documentation:

  • ASU
  • Loan care
  • Loan protection
  • Payment cover
  • Protection plan

Should I use a PPI claims company?

The PPI controversy (and the size of subsequent payouts from banks) has created a cottage industry of often questionable, self-styled ‘claims management’ firms that offer to secure your compensation for you.

There is no need, however, to use a ‘claims management’ firm. No professional expertise or specialist help is required to submit a claim; they can be submitted very easily by almost anyone.

Some claims management firms make lofty claims about their abilities, alleging for example that banks process the claims they submit faster than those submitted by individuals, or that they’re able to secure higher levels of compensation than someone claiming themselves can. Both claims are false.

These businesses also typically expect a quarter of your disbursement in return for their services, or can even ask for an upfront deposit. By submitting a PPI claim yourself, you can secure compensation in full.

How can I make a PPI claim?

Submitting a PPI claim is very simple, and can be done in three easy steps.

  • Find all the relevant documentation you can, and make copies.

Of particular importance are any documents that demonstrate a PPI policy was taken out in your name, and/or that you made payments for it.

  • Send a letter to the provider that you believe mis-sold you the policy.

In it, explain your reasons for believing that you were mis-sold PPI, and include any applicable documentation. As a guide, the Money Advice Service has published a letter template on its website, which can be accessed by clicking here.

  • Wait.

Banks are obliged by law to respond within eight weeks of your letter being sent. If you don’t receive a response, send a letter of complaint to the Financial Ombudsman Service.

Will my PPI claim be successful?

The odds are certainly in your favour. Since January 2011, over 14 million claims have been submitted; 70% have been upheld, and banks have paid out £17.3bn in compensation.

How much will my PPI payout be?

According to figures released by the Financial Ombudsman Service, the average payout for PPI compensation is around £3,000 per claimant.

Related Posts

There are 2 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

It’s time to get your finances in shape, and moving your cash savings to a higher paying deal is a good plac...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week