How do I claim back PPI?

How do I claim back PPI?

You can claim back PPI (Payment Protection Insurance) by firstly contacting the bank to establish if PPI was applied on any old facilities that you might have had.  If it has been applied, and you believe it was mis-sold, then you can make a claim for a refund.

How do you know if you had PPI?

There are around 40 million policies which still remain unclaimed, as at 2017.  This is likely to be largely as a result of people not realising that they were on their facilities that they had in the past (whether it was on credit cards, loans, hire purchase, store cards or mortgages).  The vast majority of people do not have any paperwork and are unable to establish if PPI was applied from the information and knowledge that they have.

The main thing about PPI is that people were unaware when it was applied.  This could be a reason why so many policies remain unclaimed.  People did not realise it was on their old facilities and were unaware of it.  Unfortunately, with the passage of time, this also weakens the senses and means that people are missing out on potentially on thousands of pounds by way of refunds.

How do I make a PPI claim?

Whether you are aware of PPI being applied on an old facility, or not, you can look to make a claim if it has.

The first step is to establish if PPI was applied on your borrowing facility.  This can be dealt with by contacting the banks or any other finance company that you had borrowing with and ask them if you had PPI.  They will of course unlikely make this particular job easy for you and many will come up with excuses, such as they only have information for a certain period of time, primarily 6 years (which is the time they have to keep information under the Data Protection Act).

However, we have found that through our experience and persistence, information through to the late 1980s has been found for some clients.  This is never a guarantee, however, which is why we work purely on a no win no fee basis.

How do I calculate what refund I should get?

This is always an extremely difficult question and one that is, quite frankly, almost impossible to answer.  There are effectively three elements that need to be considered when looking at any refund.  These are: –

  1. Payment Protection Insurance premiums paid.

This is fairly self-explanatory.  Within any refund they would need to take into account the PPI that you have paid from the outset of the facility through to when the facility was closed, or when the PPI was cancelled or stopped.

Interest needs to be refunded on the PPI paid at the date the PPI was paid through to the date of your refund.  This calculation is made upon the prevailing rate of interest of the facility (loan, credit card or mortgage) at the time the PPI itself was taken.  Of course, if interest rates changed and altered, then this is reflected within this particular calculation.

Another element that needs to be taken into account is how the PPI was taken in the first place.  Was it collected as an upfront fee (as most loan facilities were), or was it calculated and taken on a monthly basis (such as with a mortgage or on a credit card) where a premium is calculated on the amount you owed at any particular monthly point.

  1. Compensatory Interest.

This is the 8% compensatory interest that is calculated upon the total amounts from a) and b) above for the duration of the facility and up to the date of the refund being made.

Therefore, as you can see, calculations are not necessarily straightforward and, with the make-up of any refunds (particularly in respect of refunds being made and including interest at the prevailing rate of interest of the facility involved, which can have real effect if a credit card PPI is dealt with) then refunds can mount up.

What if the lender declines my claim?

The lender can decline a claim for two reasons: –

  1. The lenders are unable to establish or find any information in relation to PPI.

This is a common reason for declining a claim and one that does not necessarily mean you have to stop.  We have found that with persistence the vast majority of our clients’ information can be located.  This can take some time and resources in order to pursue the lender.

Sometimes we end up in a situation where the lender cannot find the information, regardless of how long we pursue them for and what information we are able to provide (although the vast majority are able to locate information based on name, address and date of birth).  If they cannot find it however, they cannot find it and unfortunately that will be the end of the matter.

  1. After reviewing PPI the lenders have established, they then look to decline a claim stating that the policy was not mis-sold.

Once again, this does not mean that you have to stop the claim.  It can be taken forward (as we often do) through the Financial Ombudsman to challenge the decision of the lender.  You have 6 months to do so from the date of issue of the lender’s final response letter.

Whilst the banks and lenders wrap it up in nice fancy terms, having provided you with information and so on, the real reason for them declining claims is that they can get away with declining a certain proportion (probably around 40% to 50% of claims) as the majority of these people who they decline claims for will not take it further.  This of course means that the banks have actually won – because there is no refund due to the fact that it does not go forward any further.

Can I use someone else to make my claim for PPI?

We have considerable experience dealing with a variety of bank complaints since the late 1990s and PPI is the one that we enjoy and have a large number of clients who we have represented and are able to and have been able to obtain refunds and still are.

We work purely on a no win no fee basis where, should PPI be established and we are able to challenge it successfully, our fee is 25% including VAT.  Of course, if there was no PPI or we are unsuccessful in obtaining a refund – there is no fee to pay.

Martin Knipe