RECLAIM YOUR PAYMENT PROTECTION INSURANCE

 Have you borrowed money or taken out a credit card or a store card in the last few years? And if so, were you also sold Payment Protection Insurance (PPI)? If so there’s a good chance it was mis-sold and you may be able to claim back the premiums you paid and any interest you might have paid on them.

 The Financial Services Authority has taken action against more than twenty firms and fined them a total of £11 million for mis-selling PPI. Some are reviewing all sales. But many are not and if you have taken out credit of any sort it is worth considering if you have been mis-sold PPI.

 You were almost certainly mis-sold if any of the following apply

• You were not told the insurance was optional
• You were led to believe that your application would be turned down if you did not take the insurance.
• You were not told about the policy exclusions.
• You were not told that the policy may not pay out if you have had previous medical conditions.
• You were self-employed but the policy excludes self-employed people.
• You were not told that the policy would not pay out if you were over a certain age – normally 65 or pension age.
• You were unemployed but not told that you were paying for unemployment cover.
• You were not told the policy would not pay out if you lost your job for any reason except redundancy.
• You were not working but paid for unemployment cover.
• The premium for the insurance was all taken at the start and added to the loan.

 If any of these apply to you then you should write to the company who sold you the insurance, tell them why you think it was mis-sold and ask for your money back. If your claim is refused or the company does not resolve it to your satisfaction within eight weeks, complain to the Financial Ombudsman Service.

 It is not worth asking for help from the many companies that advertise to put the claim through for you. They will charge a fee or a cut of the refund. You can do it yourself free and keep all the money.

 If you really want PPI then it is always better to buy it independently of the loan. It will always be cheaper – sometimes barely a fifth of the price – but make sure you understand the exclusions and just how much you might get if you claim.

 More information

www.which.co.uk/advice/ppi-how-to-claim-if-youve-been-mis-sold/index.jsp provides template letters and you can reclaim online.

www.moneysavingexpert.com/reclaim/ppi-loan-insurance has useful guidance about reclaiming and cancelling the insurance.

www.financial-ombudsman.org.uk/consumer/complaints.htm tells you how to complain to the Ombudsman.

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