PPI

PPI claims allow individuals to claim back money they have spent on mis-sold payment protection insurance.

What is PPI?

PPI, which is short for Payment Protection Insurance, is a type of insurance that is sold alongside financial products such as credit cards and loans and is intended to cover the payments should the borrower become unable to make the payments.

Who can make a PPI claim?

Although PPI is a failsafe should anything untoward happen to the borrower, it is by no means mandatory. If you believe that you have been mis-sold PPI insurance, you have a case. Mis-selling is quite a broad term and covers a number of situations from an individual being mis-lead about the terms and conditions of their PPI policy to sales staff adding a PPI premium without the borrower’s consent.

How do I go about making a PPI claim?

There are typically three main ways by which you can make a PPI claim.

  • Making the claim yourself.

    You can make the claim yourself by contacting the company which mis-sold you the product and then presenting the case to the Financial Ombudsman Service should their response prove unsatisfactory.

  • Taking the case to Small Claims Court.

    Another option is to get a lawyer and make a complaint through the Small Claims Court system. While this is quicker than making the claim yourself, do note that you will have to pay the lawyer and you will also have to pay the court should your claim be unsuccessful.

  • PPI claim companies.

    Many people who believe that they have a valid PPI case choose to take advantage of PPI claims companies. This option is less stressful than making the complaint yourself, however, it is not free. Nevertheless, many PPI claim companies operate a no-win-no-fee policy which means that you will only have to pay out if your case is successful.

Things to take into account

  • It may be more difficult (but not impossible!) to make a claim regarding a PPI policy which was sold pre-2005. This is because back then the broker who sold you the insurance may not have been regulated by the FCS or FSA.

  • If you plan on using a PPI claims company to make your claim for you, make sure that you do your research. In order to make sure that you are getting the best deal, find out if they operate a no-win-no-fee policy and compare how much they charge if your case is successful. In addition, be sure to check up on the PPI claim company’s success rate and customer reviews.

Things to take into account

  Regulated Upfront Fees? Final Fee Free Phone Number
Claim2Gain Yes No 25% + VAT No
PPI Claim Back Yes No 30% + VAT Yes
PPI Claim Company Yes No 25% + VAT No
PPI Refunds UK Yes No 25% + VAT Yes
Simplicity Claims Yes No 25% + VAT No