Payment Protection Insurance (PPI) was an add-on insurance product designed to insure repayments on loans, credit cards, car finance, mortgages if you were unable to work due to an accident, sickness or unemployment. Many PPI policies were mis-sold by the lenders; the cost of which you can claim back.
Do I have a claim?
Even if they are now repaid: check your credit card statements, finance agreements etc – if you were charged PPI and you believe it was mis-sold to you i.e. the policy cover was not properly explained, or was added without you knowing, or you were self-employed or out of work at the time – then you may have a claim.
What can I claim?
The full cost of the PPI you were charged + interest and possibly a goodwill gesture. Not sure how much PPI you paid? – ask the lender for a itemised statement with a breakdown of charges.
What paperwork do I need?
Your address and an account number are basically enough for you to write to that lender asking for a itemised statement.
How far back can I claim?
This depends on the Lender and how long they have retained records. If you have evidence to support your claim then potentially back to the 1990’s.
Should I use a claims company or make the claim myself?
There are a lot of free resources online – from letters to calculators – that can help you make a PPI claim. But some lenders will say no to your claim and to refer your complaint to the Financial Ombudsman Service, which can be a very lengthy time consuming process. So if you have the time to invest then yes, make your own claim. If however, time is a factor then use a claim company but make sure they are a legitimate claims company and regulated by the Claims Management Regulator; as there are many many websites masquerading as claims management companies.
Typically a regulated claims company will charge no upfront fees and only get paid if they are successful with your claim – for which they will take a percentage (as agreed up front) of your awarded compensation.