What is PPI?
If you have a mortgage, a loan or a credit card then you may also have a Payment
Protection Insurance policy (a PPI policy).
Also known as Accident, Sickness and Unemployment cover (ASU), Life & Accident,
Sickness and Unemployment cover (Life & ASU), Mortgage Payment Protection
Insurance (MPPI), Personal Loan Protection (PLP) or Credit Card Repayment
Protection (CCRP), these policies are often sold alongside your credit card,
loan or mortgage.
These policies are intended to pay the customer's credit-card or loan should the
customer become unemployed or ill and become unable to pay the monthly amounts
Many companies sold these policies without informing the clients they were
optional, without fully assessing the client's employment status or medical
history and in many cases this has led to the client being sold a policy they
could never claim on.
Why can I claim?
PPI insurance has been found to have been frequently mis-sold by the Financial
Services Authority. If it was mis-sold to you then you can make a claim to get
back the proportion of your monthly loan or credit-card payments that
represented the PPI payments, plus interest. There are many reasons why PPI may
have been mis-sold to you in the first place but the main reasons behind making
a claim are described below.
Were you told it was a compulsory part of the loan? If so, you may well
have been mis-sold the policy. PPI is an optional extra and cannot be
included as a requirement of taking out a loan or credit card. Although a
PPI policy can be a good idea and an excellent form of insurance, under the
correct circumstances and at the correct cost, it is optional and you do have
the right to say ‘no I don’t want it’.
Were you even aware that you had taken out PPI when you took on the loan? Some
credit-card companies, particularly certain store-cards, contained a box that
you had to tick if you wanted to opt-out of taking PPI cover. This was
sometimes hidden amongst the small print and, whilst under the pressure of
trying to fill in an application form whilst still in the store, easy to miss.
The Financial Services Authority has since clamped down on this and new
credit-card applications require the customer to opt-in if they want PPI.
If your loan was for consolidation, and you were sold a PPI policy which
had the entire premium added up-front to the loan, it was probably mis-sold.
This is because if the loan was for consolidation, it was quite likely you might
require flexibility in the future for further consolidation and single-premium
policies are notoriously inflexible.
When you take out a PPI policy there are certain circumstances under which you
cannot make a claim, known as exclusions, and if you were unemployed, a student,
retired or self-employed when you took out the policy you may have not been able
to make a claim under any circumstances.
What will I have to do?
Just phone our office on 0845 4568668 or use the online application form
and we'll send you some paperwork. Just sign the paperwork and return it to us
in the freepost envelope provided and we’ll do the rest!
Will I have to go to court?
It's extremely unlikely. In exceptional cases we might need you to attend court
in order to explain what your lender's salesperson said but we're always there
with you and if you can always decide to abandon your claim if it gets to that
stage. We've processed hundreds of cases so far and nobody has been needed in
Do you need my loan and credit-card agreements?
No we don't, but it does help to speed things up. We can write to your lender
and use the law provided by the Data Protection Act to force them to send us a
copy of your loan agreement. Companies are usually pretty slow in responding to
these requests however so if you do still have some paperwork then send it in as
you'll get your money back sooner.
How much can I claim?
You can claim back mis-sold PPI costs plus interest for the last six years. Of
course, we figure this all out for you. To get an idea of how much you might be
able to claim, use our claims estimator
Can I do this myself?
The simple answer to this is that, yes you can. Be aware though that it can be
time-consuming and some claimants find the process intimidating - some lenders
can be fairly aggressive in their letters and our advice would be to not give
How long does it take?
This very much depends on how long the lender takes to respond to us and whether
they agree the policy was mis-sold. Around a quarter of our claims are settled
in direct negotiation with the lender in two to three months. Those that need to
be taken on to the Financial Ombudsman or courts can take up to 9 months longer.
How much does it cost?
For our web-clients (who have applied directly to us via the web or by calling
us direct), we charge a special rate of 20% of the money reclaimed + VAT, which
equates to 24%. We don't charge you a penny up-front and of course if we don't
win your case, there is absolutely nothing to pay under any circumstances.