Payment Protection Policy Claims

If, when you took the Payment Protection Insurance, you had a medical problem that could have kept you from working, you should have been warned that the insurance was unlikely to be suitable for you. If it wasn't explained, you can submit a PPI Misselling claim.

If you were sold a 'single premium' Payment Protection Insurance policy – where the whole cost of the PPI is paid for up front with money that is also borrowed at the same interest rate as the loan – you should at least be able to get a refund by cancelling the PPI. If you cancelled or repaid the loan early, but were unable to cancel the Payment Protection Insurance, then you can claim for a refund.

If the refund you were offered was only a fraction of the cost you paid for PPI, you can claim to get a fair refund. If you were able to cancel the insurance, but the loan was redrawn at less favourable rates, you can also claim money back.

If the entire cost of the Payment Protection Insurance was not explained to you, or if the company only quoted the cost of the loan with the PPI attached, then you can submit a PPI Misselling claim.

If you were told the Payment Protection Insurance was compulsory it is likely you can claim. Lenders can insist that a borrower has PPI, but any company that signs up to the banking code must not insist you take out the insurance with them. It is far cheaper to buy Payment Protection Insurance separately from an independent provider.

If other important features of the Payment Protection Insurance were not explained – for example, the terms for cancelling the cover or significant exclusions such as stress and back problems – then you can submit a PPI Misselling claim.

Most Payment Protection Insurance policies have an upper age limit – usually 65 or 70. If you were older than the age limit for your PPI policy when you took the insurance, you can submit a PPI Misselling claim.

If you were sold your PPI policy by one of the firms that has already had FSA action taken against it, there is a good chance you can submit a PPI Misselling claim.

If you already had alternative cover that could insure your repayments – such as income protection or an employer illness or redundancy package – but were not asked about this, you can submit a PPI Misselling claim.

If you bought PPI to cover a long term loan there is a chance that the insurance will run out before the loan is repaid. Most PPI policies will only run for five years, so if your loan term is longer than this the seller should have explained this limitation therefore you can submit a PPI Misselling claim.