How to reclaim your PPI premiums

Last updated: May 23rd, 2013
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1. Do I have a valid claim?

Payment protection insurance (PPI) is optional and will not improve your chances of getting credit. However, the Competition Commission's investigation into PPI found many people are not aware of this. If you bought PPI alongside a mortgage, credit card, loan, store card or other credit agreement, and were not told it was optional, then you could be entitled to a refund.

Additionally, if, when you took out your loan or credit card, the cost of the PPI element and how it worked was not properly outlined or - as on some internet application forms - the PPI box was pre-ticked, you may have a case.

If you didn't have a job, or were retired or self-employed when you were sold the policy - or had a pre-existing medical condition - and the exclusions on the PPI weren't explained to you, then you could have a claim. Most policies have an age limit of 65 or 70 so if you were over the maximum age when you made the purchase then you too could potentially receive a refund.

Finally, if the provider did not take reasonable care when giving advice to ensure that the policy was suitable for your needs, for example if the policy is to run out before you finished repaying your loan - effectively leaving you without cover - then again you could claim a refund.

2. Does the type of premium make a difference?

If you have a single premium policy, rather than regular premium, this may also be the foundation for a refund. The FSA and PPI lenders agree in March 2007 that borrowers who had cancelled their single premium policies should be refunded, overturning a previous no-refund policy on these contracts. This means that if you've cancelled a single premium policy for any reason, you can now claim a proportional refund, plus interest.

The Financial Ombudsman Service says the majority of complaints that it upholds are related to single premium policies sold on unsecured loans.

3. How can I get a refund?

Write to your lender and ask for a review. You can download a template letter at the end of this article.

If it rejects your request, take the matter to the Financial Ombudsman Service. If you want to check the costs of your policy, ask your lender to send you a breakdown of your account - without paperwork a refund is unlikely. Don't use a third party reclaim company, as it will take a large chunk of any compensation.

4. Can I claim now?

Banks have 21 days to appeal the decision and until then all pending cases and future complaints are on hold. If they do not appeal – or if that appeal is unsuccessful – you can submit your complaint.

Your Comments

Is it possible to claim after the death of the person who had paid PPI - he was retired and terminally ill but at the time he died no longer had PPI. We have some but probably not all of the old statements with PPI on.

I have had a credit card for 12 years and have been self employed for
that time I am been paying ppI

The terms and conditions have changed over that time but i have been paying it for the whole 12 years

Is it possible i can get a refund for the early years when as a self employed prson i could not have claimed

My wife and had a loan with HFC about 13 years ago, we tried to claim 3 payments back when my wife had an accident and was off work for 3 months, we filled in the ppi claims form given to us by HFC but never recieved a penny,we eventually took out a bank loan and paid off our loan with HFC.
Do I still have a ligitimate claim and how would I retrieve any account/ppi numbers from HFC which no longer trades in my area?
regards
K raine

When I took up a mortgage from a well known bank, I was forced to take up insurance for the mortgage, in case of illness or redundancy. Despite my complaints, I did pay insurance on my mortgage up until I settled it on my retirement.
I've been to the bank concerned, and they are very negative and say they cannot find any paperwork related to it, even with the mortgage details which I've given them.
What else can I do? Please help.

Mr Raine,
You might hit two objections with those claims:
Firstly, you can only claim back as far as the lender has been regulated, most major banks were regulated on the 31/01/2001, anything further back than that and the banks will be unregulated and could basically get away with mis-selling. Unfortunately most lenders didn't become regulated until 2004.
Secondly, if you try to claim back this insurance yourself and the bank/lender rejects the claim, you have a 6 month time frame in which to present your claim to the financial ombudsmen service. After this time period, you will be unable to proceed any further with your claim for mis-selling.
Hope this helps, and sorry it's nearly a year late!
Kind regards,
Nathan