Information On Payment Protection Insurance

Payment Protection Insurance (PPI) Overview

Payment Protection Insurance (PPI) is an insurance policy set up to cover your monthly loan or credit card payments (or a percentage of them) if you cannot meet the contractual monthly payments due to being unable to work. PPI applies to those who cannot work due to illness, injury that has been caused by an accident, or those people who unfortunately been made redundant from their job.

Over the last ten years, some loan and credit card agreements have been mis-sold and as a result people are due thousands of pounds in compensation. Large organisations have had to repay billions of pounds (Lloyds TSB is repaying £3.2 billion) to people who were told PPI was essential.

You don't have to use another company to claim back you PPI money. The following Q&As will help and Money Saving Expert's Martin Lewis can provide you with templates which can be accessed at the end of this post.

Q&A

Q. How do you qualify to get payment protection insurance back?

A. Firstly - did your PPI start in the last six years? If yes whether you're still using the loan or not, you can reclaim. Ask for your paperwork if you don't have it.

Is it older but still active or has it ended in the last six years? Again, reclaim and get your paperwork sent out if you have not got it. Your chances of success may possibly be reduced if you have been aware of the mis-selling for some time or if the account is very old.

Did your policy end over six years ago? If you still have your documentation then reclaim, but your chances are will be reduced. It will depend on what you can remember about the sale of the policy.

If you do not have it, it is doubtful that they will have records and this means it is unlikely a claim wil be successful.

Have you claimed on the insurance? Until January 2010 it had been generally assumed that you could not pursue a mis-selling complaint if you already made a successful claim against the policy. But now proposals from the regulator now means more people will have the chance to pursue compensation.

Q. Who qualifies for PPI claim.

A. The following people would qualify to reclaim payment protection insurance;

- Anyone who didn't ask for the policy

- Anyone who was told by a sales person that it was compulsory

- If you were not aware that PPI was voluntary

- You were unemployed, retired or self employed when the policy was taken out

Q. How much can you get back.

A. A reclaim for personal loans could be thousands of pounds.

The actual amount is difficult to calculate but you don't need to worry as the creditor will calculate this.

You could still estimate it but it would depend on whether you are entitled to a full amount or a portion of it.

Q. What products have PPI?

A. The following products may have PPI attached;

- Loans (Secured or Unsecured

- Credit Cards

- Remortgage

- Car loan

- Store Card

- Catalogue

- Finance

- Hire Purchase

- Store Finance

Q. How many years back can you claim PPI?

A. Over 6 years, however the creditor might not have any details on you and if so you will not be able to claim unless you have paperwork.

Q. How do you know if PPI is attached to your Loan credit card etc?

A. You can check your credit agreement if you still have it. If you don't have it, you can request it from the company. Finally call them and ask.

Q. When can you not claim for being mis-sold PPI?

A. When you do not have any cover. Also the longer back the claim is for the PPI the more difficult it becomes.

Q. How long does it take to get your money back?

A. The time it will take will depend on the lender or credit card provider. On average a claim will take around 12 weeks though some cases have been known to take as little as 4-6 weeks. However if your case needs to be referred to the Financial Services Service (FOS) it may take longer.

Q. Who do you apply to for your money back.

A. There are a lot of companies you can use but they generally all will have a no win no fee, but if they win they could take a lot of your compensation and may add VAT if they are VAT registered.

You can deal with your PPI claim yourself.