The Your Money guide to claiming PPI
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:
- 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.
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.