If you have ever had a store card, credit card, loan or car finance, you may have entered into a PPI agreement that you were not aware of. You may also have been wrongly advised at the time that it was compulsory that you agreed to it in order to get the funds.
- Did the company make it clear that the policy was optional?
- Did the company make it clear that you had a cooling off period after agreeing to it?
- Did you feel under duress to take the policy by a pushy representative of the company?
- Did the company advise you that you may not be able to apply unless you agreed to a PPI policy?
- Did the company tell you that it may be more expensive if you didn’t take the policy?
If you can answer yes to any of the above, then you may have a case.
Use our tried and tested guide:
1. Get your paperwork in order.
- Apply for your credit report. Your credit report will contain all of your borrowing, the company and account information, the date you borrowed it and the amount you borrowed.
- Make a spreadsheet or write everything on a sheet of paper like so:
|Company name||Type of borrowing:||Date (from and to):||Amount borrowed:||Date PPI claim sent to company:||Response from company:|
|Company Y||Loan||1st April 2012-29th Dec 2014||£5,000||1st April 2016||Upheld|
|Company Y||Credit card||9th Jun 2011-6th May 2015||£9,000||Declined – write to Ombudsman|
2. Download this form and fill it out to the best of your ability using one form for each loan, credit card etc. Don’t worry too much if there is information missing, as long as you have the basic information (company name, account details, type of borrowing, dates and the amount borrowed), the company you are writing to will be able to do the rest.
3. Now write a letter to each company asking them the following (please use whatever applies to your situation:
- Please confirm whether PPI was attached to this borrowing as I do not recall this being mentioned to me when I took out the [loan/credit card etc delete as appropriate].
- Your company did not make it clear to me that the policy was optional.
- Your company did not make it clear to me that I had a cooling off period.
- Your company made me feel under duress to take the policy by an unprofessional representative of your company.
- Your company advised me that I may not be able to apply unless I agreed to a PPI policy.
- Your company advised me that it may be more expensive if I didn’t take the policy.
4. Before you send each letter, make sure you keep a copy for your records.
5. Once you have sent each letter, make sure you update your spreadsheet.
6. You should then receive a letter from the company advising you that they are looking into it and will come back to you within a certain time frame. If you do not receive a response after 7 working days, you need to send a further letter chasing for a response to the first. Ensure you enclose a copy of the first letter sent.
7. Update your spreadsheet when receiving or sending any communications to the company.
8. You will then receive a final response from the company:
If your complaint is upheld:
The company will pay the sum owed into your bank account or they may send you a cheque. You will need to let the Inland Revenue about any funds you receive as they are taxable.
You must check the wording in the letter. If the company mentions “comparative redress” or “alternative redress” or the borrowing is referred to as “a different type of PPI”, a “monthly policy” etc and it was in relation to a loan, they may owe you more so you don’t have to accept it.
Write to the company again advising them that you want to be refunded in full and to explain to you exactly what they are offering and why. If the company write back and decline, you need to follow the steps below.
If your complaint is declined:
Write a letter of complaint to the Financial Ombudsman. They will need a copy of all the correspondence between you and the company and the company’s final response.
The Ombudsman will make a decision and write to you and the company to advise them.
If you are not happy with the Ombudsman’s decision, you can complain here.