Free PPI Reclaim
Payment Protection Insurance (PPI) is an insurance product sold alongside loans, mortgages or other credit facilities, designed to cover your payments if you become ill or die, lose your job or lose your income for other reasons.
It was mis-sold on millions of policies. Read below to find out more about PPI. You might be eligible to reclaim. Using Resolver, you can submit your PPI reclaim for free.
Who is your issue with?
Payment Protection Insurance (PPI) is an insurance product sold alongside loans, mortgages or other credit facilities, designed to cover your payments if you become ill or die, lose our job or lose your income for other reasons.
If your claim on a PPI policy is upheld, the insurer will cover your repayments for a set period – usually 12 months. in the event of an accident, sickness or, in some cases, unemployment. Some policies cover you for longer periods, but in general PPI was sold as a way to cover your payments if an unexpected event occurred, until you have recovered.
PPI has become notorious as the "biggest mis-selling scandal of all time". PPI policies were sold in huge numbers – upwards of 45 million policies may have been sold.
Taking out insurance to cover you if you can’t make your payments on a loan or credit agreement is a good idea in theory. But banks and other credit providers have been accused of putting huge pressure on their sales staff to sell PPI policies. PPI sales also generated massive profits because unlike other insurance policies, not many people made claims and those that did found that it wasn’t so easy to get a pay-out. As a result, many people ended up with an insurance policy they didn’t want, need, and in some case, didn’t even know they had.
What do people complain about?
- "I didn’t know I had been sold PPI".
- "I was told I had to take out PPI in order to get a loan or credit".
- "My circumstances meant that the policy was unsuitable for me and a claim would not have been successful".
- "I didn’t know how expensive it would be".
- "My claim has been turned down".
If you believe you were mis-sold PPI, it's worth sending a reclaim. Depending on circumstances, sometimes your claim can be rejected. If you have further evidence or simply don't agree with the decision for any reason, you can send another reclaim.
Generally, the amount you pay for loan PPI is about 15% of your balance, but it could be up to 30%. It doesn't sound much, but it quickly mounts up.
It's possible to estimate how much the insurance has cost to see what you can reclaim. It then depends whether you're entitled to the full amount or just part of it.
For loan reclaims it could be many thousands of pounds. Yet calculating the actual amount's difficult and often unnecessary, as the lender will do this for you.>
One way of doing this is to work out what your monthly loan payment should have been. Use our loan calculator to enter your loan amount, length and APR and compare to what you were paying. Here are some examples - if you were paying more, it's likely PPI was included.
If you know your monthly PPI cost, simply multiply this by the length of the loan to work out its cost.
If not, you can do a very rough estimate. Work out the total loan cost by multiplying the monthly payments by the loan length, then take 15% off the total. This is a typical insurance cost, though it can be anywhere between 10-30%.
First things first, there’s no compensation scheme for PPI. You will need to make a complaint about the way the policy was sold to you. Don’t worry, it’s really not that difficult to do – and you don’t need to pay anyone to make the claim for you.
Many of the people we speak to aren’t sure if they were sold a policy. The simplest way to establish if you have PPI is to check all your old documents. If you don’t have documents there are other ways to check too.
If you do have your documents
Go through your original loan, credit card, mortgage or store card statements - checking for any reference to an insurance fee or product to cover you if you were to lose your job through accident, sickness or unemployment.
Typical alternative names for PPI include:
- Protection plan
- Credit insurance
- Credit protection
- Payment cover
- Loan care
- Loan protection
- Loan repayment
- Mortgage payment protection insurance
If you don’t have your documents
It may be that you don’t have any documents, or you do have them but still aren’t sure if you have PPI.
Contact the bank or credit provider. They are obliged to check their records and will let you know what they find. Businesses usually keep documentation for around six years, so they aren’t always going to find proof that you had PPI, particularly if the policy was sold a long time ago. So, give them as much information as you can, including the addresses of places you may have lived when you took out the policy.
If the search is turning up nothing, then you might want to check your credit report. There are three credit reference agencies that might have details of old loans and credit, though these are usually marked as ‘settled’ if you’ve paid in full. Your statutory credit report should set you back a few pounds only.
If the bank can’t find your policy, you can still complain to the Financial Ombudsman, though they’ll need you to cast your mind back and note down everything you can remember about the sale.
Once you’ve established that you were sold a PPI policy, you need to explain why you think it was miss-sold to you. Try this quick checklist to jog your memory.
Don’t worry if you don’t understand all of these questions. Just think about the ones that might apply to you.
- If the insurance was optional, was that made clear to you?
- Did the adviser tell you about any significant exclusions under the policy – for example, the exclusion that says you won’t be covered for any pre-existing medical conditions?
- Did the adviser (or literature) make it clear you could buy PPI from another provider?
- If you took out a loan or finance agreement, did the adviser make it clear that you would have to pay for the insurance in one single payment?
- 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 and that you would be paying interest on it?
- Did the policy cover you for the full duration of your loan? Single premium PPI insurance normally only lasts for five years. Was your loan longer?
- Were you unemployed or in difficult financial circumstances at the time?
Resolver PPI reclaim tool will take you through a few steps and help you prepare your claim. Before you search for the company to start your complaint/claim, please also read below our tips to make it easier for you.
After you’ve filled in all the information and details you can remember about when the PPI was sold to you, your case file is saved in securely online for you to refer back to.
Recommended by MoneySavingExpert and LegalBeagles, Resolver's Free PPI Reclaim tool is all you need to submit your reclaim with ease.
- Note down anything you can remember about the sale that might be relevant.
- Attach any documents (why not photograph them on a smart phone to save on copying them).
- Send off the case and check the Resolver dashboard so you can keep tabs on it.
PPI reclaim tool
If you don’t get a response or decision within eight weeks, or you’re not satisfied with the response, let us know. You can make a complaint for free to the Financial Ombudsman. The ombudsman will ask you to fill out a questionnaire to help them investigate your complaint. If you need help you can speak to them on phone 0800 023 4567
PPI is a regulated financial product. This means that a business must be regulated by the Financial Conduct Authority (FCA) to sell you a policy and underwrite the insurance.
Selling insurance (broking) has been regulated from 14 January 2005. All sales made on or after this point must be addressed by the business that sold you the policy, even if it is no longer trading. They are obliged to follow the regulations set down by the FCA and they have to tell you about your statutory right to go to the free Financial Ombudsman Service (FOS) if you are unhappy with their response.
The rules covering PPI sold prior to 14 January 2005 (briefly):
- If a large bank or insurance complaint sold your product you should be able to pursue a complaint even if the policies were sold much earlier. This is because these businesses have ‘compulsory jurisdiction’.
- If the broker was a member of a previous trade body, then you can make a complaint from the date it became a member. Both the FCA and the FOS can check their database to confirm if this is the case.
- If the firm wasn’t regulated when it sold you the policy you should still complain, but you might not be able to take the case to the FOS.
- If the firm has gone bust, then you could take your complaint to the Financial Services Compensation Scheme.
Usually, the Statute of Limitations Act sets out the deadlines after which you must make a complaint. But with financial complaints there are other deadlines that mean you have more rights.
The FCA have stated that as of 29 August 2019, all PPI claims will stop. So, you must make your complaint before this date.
The FCA’s complaint handling rules say that you have:
- Six months from the date the business sends you a final response letter to your complaint. This should clearly state that you have six months to go to the ombudsman if you’re not happy.
- The complaint must have been made six years from the event the you are complaining about – or –
- Three years from when the point you knew, or could reasonably have known, that there was a problem.
These last two points are known as the ‘six and three-year rule’. It sounds complicated, but in practice it means that even if you were sold a policy over six years ago by a regulated business, you’ve got three years from the point you realised that there was something wrong to make a complaint.
Because of the scale of PPI mis-selling banks began to write to their customers with warning letters, telling them that they had three years to make a complaint. If you received one of these letters but over three years have passed, they may argue your complaint was time barred – and under the rules they don’t have to look at it.
You should still make a complaint regardless, though if your complaint goes to the financial ombudsman they will need you to give reasons for not making a complaint in time.
I don’t know if I was mis sold PPI, what should I do?
If you’re not sure if you had PPI, then you’ll need to contact the business that sold you the loan or credit agreement and ask them what documents or information they have on file. They business has to tell you the truth, but the older your policy, the harder it may be to track things down. Resolver can help you make contact with the business so get started your ppi reclaim here.
If you can’t remember who you had loans or credit agreements with, then you’re out of luck. There’s no ‘central database’ for PPI sales, so you’ll have to cast your mind back or raid those drawers stuffed with old paperwork.
I’ve not got my documents; can I still complain?
Yes, you can, but you’ll need to find some proof of the sale. Get in touch with the firm through Resolver and ask them to check their records. They may have file notes, scans, copies of original documents or other references to your loan or credit agreement, all of which could indicate if PPI was sold with the policy.
What if the business refuses to give me my documents?
If the business is being difficult, you can make a request under the Data Protection Act for the information. This is known as a ‘subject access request’ and the firm is obliged to comply with it. They can charge you up to £10 to do this. Here’s some information from the Information Commissioner’s Office on how to get started.
An easier way around this is to ‘escalate’ your ppi reclaim to the Financial Ombudsman Service. The business has to give the ombudsman the documents they need to investigate the reclaim, so you’ll get them anyway. We’ll pass your full ppi reclaim file to the ombudsman if the firm refuses to help.
How do I find out who to complain to?
You’d think this would be simple and in many cases it is. But things do get tricky sometimes because of the way PPI sales were subcontracted to various other businesses. So complaining about PPI on a storecard can be very complicated at first glance, because loads of businesses might actually be responsible for the sale, depending on the date you were sold the card.
In simple terms, if you have the rough date you took out the credit agreement and the name of the company you bought if from, it’s possible to search a database of regulated firms to find out who should deal with your reclaim. This isn’t always easy to do so you can call the Financial Conduct Authority (FCA) or the Financial Ombudsman Service (FOS). They can check the database for you.
How does the complaint process work?
It’s so easy to make a ppi reclaim, you’ll wonder why you didn’t do it before. Fill in our simple online form using our ppi reclaim tool. Start by typing the company name. It’ll take a few minutes, but we’d encourage you to write down as much as you can remember – every little bit helps.
We then send the information to the business at their head office and they’ll investigate your complaint. They have a maximum of eight weeks from the moment we contact them to resolve your complaint. If they don’t respond, you can automatically appeal to the financial ombudsman. If you’re not happy with the response from the firm, you can automatically go to the ombudsman too. The ombudsman is free, so you don’t lose out by taking it further.
The business says they don’t have any records because it was over 6 years ago, what can I do?
As a general rule, a financial business will keep documents and records for up to six years after the loan or credit agreement has ended. But that doesn’t mean that after this point nothing will remain on file. Financial businesses often have documents kicking around from much further back – and we expect them to thoroughly check.
If nothing turns up you can still go to the ombudsman – they might unearth more information. But being realistic, if ultimately no evidence can be found, your claim is likely to fail.
What if the business that sold me PPI has gone bust?
If the firm that sold you the PPI was regulated at the point it sold you the policy – and if it has formally filed for bankruptcy – then the Financial Services Compensation Scheme (FSCS) can potentially look at your case. The FSCS was set up to help people in exactly this situation and they can pay out up to £85,000 from a fund to cover bust businesses. But they still need to investigate your situation as a reclaim – so you’ll need to explain why the policy was mis-sold to you.
Financial Services Compensation Scheme contact number is 0800 678 1100
I’ve signed up with a claims management company, what can I do?
Once you’ve signed a contract, there’s not much you can do – even if the firm does precisely nothing to get you your money back. We’re sorry to say that we’ve heard some horrible stories from people who’ve given up on their claims managers, made their own claims, won – then been threatened with legal action by the claims manager for their share of the money. This is absolutely unacceptable and is one of the many reasons why you should never use claims managers.
To be fair, not all of them are so disreputable. But in the last few years hundreds have been banned from carrying out claims manager services by the Claims Manager Regulator. So always report poor service.
You can make a complaint to the Legal Services Ombudsman about claims managers so if you think you’ve been misled in to signing a contract, carry on with our PPI complaint but make a complaint to the ombudsman as soon as you can.
How do claims managers know how much money I will get?
They make it up. Yes, you heard that correctly. That text telling you you’re entitled to £3258.25 compensation. Total fabrication. How do we know this? It’s impossible to know how much compensation you might get until your case is investigated, the kind of PPI and how it works is assessed and interest is added. We can’t say this enough – don’t trust claims managers.
Why are you writing to the wrong firm?
When you get in touch with Resolver, we’ll send your reclaim to the firm you tell us sold you the policy. But that firm might have subcontracted sales to another business, or used multiple sales agents from other companies over the years. If a business tells us they didn’t sell your PPI, we’ll do our best to get the ppi reclaim to the right firm. But failing that, we can help you escalate the case to the financial ombudsman who can also do this for you.
How do I know if my compensation is correct?
It’s not simple at all to definitively know if your offer is correct. If you were sold PPI with a loan it’s likely you have a ‘lump sum’ policy, which means the PPI was added in a big chunk to your loan, then interest was put on the top. These are really straightforward compensation offers. But compensation on credit cards and other forms of credit involve incredibly complicated calculations that work out what money you would have had if the PPI hadn’t been added each month.
The FCA have set the rules about compensation and the ombudsman also follows these to the letter. If you’re not sure about an offer, ask the firm to confirm in writing that they have followed the FCA compensation guidelines and get them to send you the calculations. If they confirm in writing they have, the compensation should be correct. Read more here on FCA's PPI publication
What does the Plevin case mean for me?
You might hear lots of discussion about a PPI complaint that went to the Supreme Court. The case – Plevin v/s Paragon Personal Finance Ltd – was about large amounts of commission paid on a PPI sale. The customer won and the decision had huge implications for everyone sold a policy.
The case is extraordinarily complicated, so the FCA spent some time thinking about how the decision should be implemented and what it meant for everyone. Here’s what they decided:
If you have not complained about PPI and want to complain about undisclosed high commission, you should consider:
- whether you may also have been mis-sold PPI. Your provider will consider undisclosed high commission as part of a mis-selling complaint even if you don’t mention it
If you have already complained about being mis-sold PPI you should be aware that:
- if your complaint was rejected you may be able to make a new complaint about undisclosed high commission – contact your provider
- if your complaint was successful and you received some or all of your money back, you will not receive further compensation for a complaint about undisclosed high commission as there is no remaining loss that you need to be compensated for
- if you complained about PPI after late 2015, your provider should already have told you in writing whether it will consider undisclosed high commission as part of your complaint – check your paperwork or contact your provider if you aren’t sure
When is the deadline and is it a final deadline?
You can make a PPI mis-selling claim about a product sold at any time, but the process is simpler if the product is currently active, or has been active in the past six years
The 29th August 2019 is the deadline of PPI reclaims - after this date, a refund claim won’t be accepted. If you think you might be owed a PPI refund but aren’t sure, read our guide below on how to find out if you’re eligible and what to do if you are.
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You can raise issues with 154 companies in PPI services
Key companies include: