How to Win a PPI Claim

If you live in the UK and have ever had a mortgage, credit card, or other loan, you may have been sold payment protection insurance (PPI). This product is designed to cover your payments if you are unable to pay, usually as the result of illness. Unfortunately, many salespeople failed to adequately explain the terms of this product. This resulted in PPI being mis-sold to people who were ineligible for the product, typically as the result of a pre-existing medical condition or because they were self-employed. The good news is that claims are overwhelmingly successful provided they are filed promptly and correctly.^{[1]XResearch source}

Method 1

Method 1 of 3:

Submitting a Claim to the Lender

1
Determine if PPI was sold to you. PPI was commonly sold with mortgages, personal and business loans, credit and store cards, and car finance loans. Other finance agreements, such as installment plans, also may have included PPI.^{[2]XResearch source}
- Check your loan origination paperwork to see if PPI was included. PPI also may be included as a line item on monthly statements.
- If you can't determine from your paperwork whether PPI was sold to you, contact the lender and find out if PPI is included in their records of your account.
2
Gather all documents related to the loan. Make copies of all documents that show the existence of a PPI policy on the loan, or show you paying for it. If you're not sure whether a document is relevant, err on the side of caution if it's related to the same loan and copy it anyway.^{[3]XResearch source}
- You'll be more likely to get the most possible money back if you have complete documentation of the total amounts you paid.
- The lender should have this same information, but in some cases they may claim they no longer have the records, especially for older loans.
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3
Seek free advice from a nonprofit organization. There are many consumer rights organizations in the UK that can help you reclaim mis-sold PPI, and they won't charge a fee for their assistance. Go to them if you don't understand something or if you run into problems.^{[4]XTrustworthy SourceOfficial UK government websiteOfficial website for the public sector of the UK governmentGo to source}
- You can find a list of organizations that offer free advice and assistance at https://www.gov.uk/guidance/claim-compensation-for-injury-or-financial-loss.
- There are a number of claims management companies that offer to file your PPI claim for you. However, they charge fees which can end up being 25 percent or more of the amount you recover.^{[5]XResearch source}
Most large banks and lenders have questionnaires available on their websites that allow you to quickly determine whether you can reclaim mis-sold PPI from them.^{[6]XResearch source}
5
Draft a letter to the lender. If you paid for PPI from a lender that doesn't have a questionnaire available, all you have to do is send them a formal letter. Include copies of all the documents you have that prove you paid PPI.^{[7]XResearch source}
- The Money Advice Service has letter templates you can use. Go to https://www.moneyadviceservice.org.uk/en/articles/letter-templates and click on the "Letter to reclaim mis-sold PPI" under "Insurance."
6
Wait for a response from the lender. Lenders are required by law to respond to your letter within 8 weeks. If you don't hear from them in this time, you can file a complaint with the Financial Ombudsman Service (FOS).^{[8]XResearch source}
- You can also file a complaint with the FOS if you are dissatisfied with the response from the lender. You must do this within 6 months of the date of the lender's response.^{[9]XResearch source}
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Method 2

Method 2 of 3:

Filing a Complaint with the FOS

1
Visit the Financial Ombudsman Service website. The FOS exists to help consumers sort out any problems they have with financial services. From the FOS website, you can file a complaint as well as access other resources that may help you with your PPI claim.^{[10]XResearch source}
- Go to http://www.financial-ombudsman.org.uk/consumer/complaints.htm to get started.
2
Complete the online complaint form. You can file a complaint about mis-sold PPI directly on the FOS website. You must provide details about yourself and your claim. You can also attach digital files to your online complaint.^{[11]XResearch source}
- Call 0800 023 4567 if you have any questions about the form. Operators are available between 8:00 a.m. and 8:00 p.m. Monday through Friday, and from 9:00 a.m. to 1:00 p.m. on Saturday.
3
Submit your form. Once you've entered all your information you can submit it to the FOS with a click. If you prefer, the FOS also gives you the option of downloading forms, which you can email or print and mail.^{[12]XResearch source}
- If you're mailing paper forms, send them to Financial Ombudsman Service, Exchange Tower, London E146SR.
4
Cooperate with the FOS investigation. Once your complaint is received, the FOS will investigate the situation to determine whether PPI was mis-sold in your case and whether the lender owes you money.^{[13]XResearch source}
- The FOS will review documents. You may be contacted by an agent with questions about the sales process or how the loan originated. Answer these questions as best you can recollect, and be honest if you don't remember something.
5
Sign up for email updates. It can take some time for the FOS to evaluate your complaint and complete their investigation. In the meantime, email updates provide you news on the work FOS is doing to resolve PPI claims.^{[14]XResearch source}
- If circumstances change or you acquire new information, you can call at 0800 121 6222 or email [email protected].
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Method 3

Method 3 of 3:

Filing a Complaint about PPI Commission

1
Gather documents and information about the commission. In some cases, you may not have any information about the commission the lender earned on your PPI. Make copies of all documents that show the existence of a PPI policy and your payments towards it.^{[15]XResearch source}
- The lender typically was paid commission by the insurer for selling you PPI. This commission would have come out of your PPI payments.
- While you aren't legally required to know or explain the amount of commission and why it was too high, you are required to prove you had a PPI policy on your loan.
2
Confirm your eligibility. If your lender earned a higher level of commission than allowed, you may be able to get some of that money back. Claiming commission is only available for loans taken out on or after 6 April 2007.^{[16]XResearch source}
- You may be able to claim some of the commission back if you took out the loan prior to 6 April 2007, provided the account was still open on or after 6 April 2008. Note that this refers to the account being open – it doesn't matter if you had stopped using it.
- If you already complained about mis-sold PPI and got some money back, you aren't eligible to get back any additional money for a high level of commission. However, you may be able to get some money back if your previous PPI claim was rejected.
3
Complain to the lender first. The FOS requires you to work with the lender directly to claim commission before you file a complaint with the FOS. You can use template letters available from consumer protection services as a guide.^{[17]XResearch source}
- If you aren't sure or can't tell how much commission the lender earned on your PPI, send a complaint letter to the lender anyway and request this information. They are required by law to provide it to you.^{[18]XResearch source}
- If the lender is no longer in business, or if you can't find contact information for them, contact the FOS at 0800 121 6222.
4
Wait for a response from the lender. When they receive your letter, the lender must evaluate your claim and provide a written response within 8 weeks. If you don't receive any response, you should file a complaint with the FOS.^{[19]XResearch source}
- You can also file a complaint with the FOS if you're not satisfied with the response you receive from the lender, or think you should get more money. The FOS will look into the matter for you. Go to http://www.financial-ombudsman.org.uk/ppi/can-i-complain-about-commission.html for more information or to file a complaint.
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Tips

If you used a claims management company and were dissatisfied with how they handled your claim, you can file a complaint against them with the Claims Management Regulator at the Ministry of Justice. Visit https://www.gov.uk/government/groups/claims-management-regulator to learn more.
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