If you wish to claim back PPI payments direct from the bank or loans company which sold it to you, you can write to them with a PPI reclaim letter setting out the reasons for your claim. The PPI reclaim letter does not have to be in any specific format but must give the company enough information to assess your claim.
You need to be able to tell them, your account number and ideally the date you took out the PPI agreement with them. You also need to explain clearly what the grounds are that you are relying on to reclaim PPI. For instance this may be because you were told it was not optional or you were put under undue pressure to take out the policy.
Many people decide that a PPI claim company will be the best option to enable them to make their claim. In such cases it is important to find out who are the best PPI claims companies in terms of success rate and low charges.
Reclaiming mis-sold payment protection insurance can be a quick and easy process. There is no need to use a claims handling company that will rake off 30% of any compensation you are awarded.
Can I claim mis-sold PPI?
If you took out any kind of consumer loan, store card, credit card or mortgage in the 1990s or 2000s, you may have been mis-sold PPI. Go back through all your old loan and mortgage statements and check for any mention of an insurance to cover your payments if you lost your job through accident, sickness or unemployment.
What if I have no bank statements?
If you don’t have them or simply cannot remember which lenders you’ve borrowed from, check your credit report. It lists any loans, mortgages or other debts within the last six years, even if they’re now closed. Many lenders will now tell you if you call them up to ask whether you had PPI.
How was it mis-sold?
Was the fact that the insurance was optional made clear to you? Were you even aware you had it? Did the adviser tell you about any significant exclusions under the policy – it didn’t cover any pre-existing medical condition, or were you self-employed?
If you had to pay for the PPI as a single payment, did the adviser make it clear that the insurance cost would be added to the loan? Or that you would be paying interest on it? If the answer to any of these is no – you may well have a claim.
How do I claim?
Many websites offer links to free template letters. Print it off, fill it in, and send it off.
What will I get?
If your complaint is upheld, then the company that sold you the policy should do its best to put you back in the position you would have been in if you had never taken PPI. You may also be entitled to statutory compensation, which is usually set at an interest rate of 8% of the money refunded.
What if it’s rejected?
Check the assumptions the bank has made – these will have been explained in your rejection letter. If you think these are wrong, or that you have been unfairly treated, go back to your lender.
If you still don’t think the amount offered is fair, the free Financial Ombudsman Service can challenge your bank’s decision.
How long have I got?
Your complaint must be received by the firm you’re complaining to by 29 August 2019. Miss it, and the complaint won’t be considered.