Ppi Insurance: Did You Have It Or Not?

If you're unsure whether you've had Payment Protection Insurance (PPI), it's worth checking. PPI was meant to provide financial protection for consumers in the event of unforeseen circumstances that prevented them from repaying loans or credit. However, it became a major financial scandal, with millions of borrowers potentially still owed compensation. To determine if you had PPI, you can examine your loan or credit card agreements for terms like payment protection insurance, loan protection, or credit insurance. If you're unsure, you can contact your lender or seek advice from Citizens Advice. If you find that you had PPI, you may be able to claim compensation if it was mis-sold to you.

Check your loan or credit card agreements for terms like PPI, loan protection, or credit insurance

If you have taken out a loan or bought something on credit, such as an overdraft, credit card, or mortgage, it is worth checking if you had Payment Protection Insurance (PPI). PPI was meant to provide financial protection to consumers in the event of unforeseen circumstances that prevented them from repaying loans or credit. However, it became notorious for being mis-sold to countless customers.

To check if you had PPI, start by examining your loan or credit card agreements for terms like "Payment Protection Insurance," "loan protection," or "credit insurance." Look through any paperwork you have, such as statements, terms and conditions, or the original agreement. If you don't have the paperwork, you can contact your nearest Citizens Advice, and an advisor can help you determine if you've had PPI.

If you find that you had PPI, you can then determine if you were mis-sold it. You may have been mis-sold PPI if the company you borrowed from didn't tell you about it, or pressured you into buying it. Even if you were aware of the PPI, it might still have been mis-sold if the company didn't follow the proper steps or didn't give you all the facts you needed before you bought it. They should have checked that the policy covered you and asked about your situation, such as your work, health, and financial circumstances.

If you believe you were mis-sold PPI, you can complain and get some of your money back, even if it was a long time ago. You can complain to the PPI company, and if your complaint is rejected, you can take it to the Financial Ombudsman Service. You may also want to consider joining a group litigation claim, as this can be a more efficient way to deal with these institutions.

Contact your lender or PPI company to ask about any PPI policies associated with your account

If you've had a loan or bought something on credit, it's worth checking if you had Payment Protection Insurance (PPI). It may have been added without your knowledge. If you can't find any old financial paperwork, you'll have to do some research to find information about your old accounts and financial products.

Contacting your lender or PPI company is a good way to find out about any PPI policies associated with your account. You can ask the bank or lender to check all products for PPI policies. However, keep in mind that the bank might not have a record of the product or any associated policies if the account was closed a long time ago.

If you're unsure whether you've had PPI, ask the company you borrowed from. You can find out how to contact your PPI company through the Financial Conduct Authority (FCA). If you find it difficult to get an answer from your PPI company or you don't have the paperwork, you can contact your nearest Citizens Advice. An advisor can help you work out if you've had PPI and whether it was mis-sold to you.

If your PPI company didn't follow the right steps when you bought PPI, you can complain and get some of your money back. You can usually still complain about PPI if your claim was successful or rejected more than three years ago, as long as there's a good reason you couldn't do it earlier. If your complaint is rejected and you don't think it's fair, you can take your case to the Financial Ombudsman Service.

Understand the circumstances of the sale to determine if you were mis-sold PPI

PPI, or Payment Protection Insurance, was sold alongside mortgages, credit cards, and other unsecured loans. It was supposed to cover payments on these loans if customers fell ill or lost their jobs. However, PPI was often sold to people who didn't need it or wouldn't be covered by it, and this has resulted in a mis-selling scandal.

If you want to determine whether you were mis-sold PPI, you should first understand the circumstances of the sale. Here are some questions to consider:

• Did you have a loan or buy something on credit, such as an overdraft, credit card, or mortgage? PPI was often sold alongside these products, so it's worth checking if you had PPI insurance.
• Did you buy something in instalments, such as a car or sofa? PPI may have been included in these purchases.
• Did the company you borrowed from not tell you about PPI, or pressure you into buying it? For example, did they say you'd get a better deal if you added PPI?
• Did the company not ask enough about your situation, such as your work, health, and financial circumstances? They should have done this during an 'eligibility check' to make sure the PPI policy covered you.
• Did the company give you all the facts you needed before you bought PPI? For example, did they tell you if the policy wouldn't cover you in certain circumstances?
• Did you receive a large commission from the PPI provider? If so, the sale may have been unfair under the 1974 Consumer Credit Act.

If you don't have the paperwork for your loan or purchase, you can contact the company you borrowed from to find out if PPI was included. You can also seek advice from Citizens Advice or a similar organisation, who can help you determine if you've had PPI and if it was mis-sold.

File a complaint if you were pressured into buying PPI or if it was added to your loan without your knowledge

If you were pressured into buying PPI or if it was added to your loan without your knowledge, you can file a complaint. PPI, or Payment Protection Insurance, was often sold alongside loans, credit cards, mortgages, and other types of credit. It was designed to cover repayments in the event that the borrower could not make them themselves, such as due to redundancy or illness. However, PPI was frequently mis-sold, with some companies pressuring customers to purchase it or adding it to loans without their knowledge.

If you suspect that you were pressured into buying PPI or that it was added to your loan without your consent, there are several steps you can take to file a complaint:

• Contact your PPI company: Get in touch with the company you took out the loan or credit from and ask them about the PPI. They may be able to provide you with information about whether PPI was included in your loan and, if so, the terms and conditions of the policy.
• Check your paperwork: Review any paperwork you have related to the loan or credit agreement, such as statements, terms and conditions, or the original agreement. Look for specific terms or phrases associated with PPI, such as "credit card repayments cover", "mortgage repayments protector", or "payment protection cover".
• Seek advice: If you are unsure whether you had PPI or need assistance with your complaint, you can contact Citizens Advice or a similar organisation. They can provide you with guidance and support throughout the process.
• Complain to your provider: If you believe you have a valid complaint, you can contact your PPI provider directly and explain the reasons for your complaint. They are required to respond to your complaint within eight weeks and inform you of their decision or request an extension.
• Contact the Financial Ombudsman Service: If you are unhappy with the response from your PPI provider or if they fail to respond within eight weeks, you can escalate your complaint to the Financial Ombudsman Service. They will review your case and determine if your PPI was mis-sold.

It is important to act quickly, as there may be time limits for filing PPI complaints. Additionally, keep in mind that if you have an Individual Voluntary Arrangement (IVA) or Debt Relief Order (DRO), there may be specific considerations regarding any refunds received from a successful PPI complaint.

You can keep any refund if you bought PPI after your IVA or DRO was set up

If you have been insolvent—bankrupt, had an Individual Voluntary Arrangement (IVA), or a Debt Relief Order (DRO)—you need to know how this affects a claim for a refund for a financial product. While you can't make a new claim for a PPI refund, you can still make affordability complaints and other sorts of compensation, for example, for packaged bank accounts. If you became bankrupt or started an IVA or a DRO and afterwards took out a loan, your old insolvency doesn't matter. Any refunds on credit taken after your insolvency finished will come to you. This also applies if you carried on paying PPI premiums on a mortgage after your insolvency. In this case, a PPI refund should be split, with the portion before your insolvency going to the Official Receiver and the portion afterwards coming to you.

If you took out PPI insurance after the date of your bankruptcy or your bankruptcy was annulled by the court, then you have the right to make the claim and you are entitled to keep any compensation awarded. If you entered into an IVA in the same period, you will need to contact the insolvency practitioner who dealt with your case to find out what will happen to PPI claims.

If your insolvency practitioner doesn’t complain for you, you should complain after your IVA is finished. You’ll usually be able to keep any refund you get if you’ve made all the payments in the IVA and have a certificate to say it’s complete. You can also keep the refund if you bought the PPI after your IVA was set up. Ask your insolvency practitioner if you’re not sure whether you can keep a PPI refund. You can find their contact details on GOV.UK.

A DRO is an agreement you make with a DRO adviser—known as an 'approved intermediary'—if you can’t pay your debts. The debts are cancelled after your DRO period ends, usually after a year. If you bought PPI after your DRO period ended, you can keep any refund you get. Your DRO could be cancelled if you get a refund of more than £1,000. Any refund you get will include things like interest and commission as well as the payments you made. It's best to get help from your nearest Citizens Advice before you complain.

Frequently asked questions