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Check if you can complain about mis-sold PPI

This advice applies to England

If you've had a loan or bought something on credit, it’s worth checking if you had payment protection insurance (PPI) - it might have been added without telling you.

If the PPI company didn’t follow the right steps when you bought PPI, you can complain and get some of your money back - even if you bought it a long time ago.

If you’ve already made a complaint and it was rejected, check if you can complain to the Financial Ombudsman Service.

If you’ve already claimed on your PPI policy

You might have made a claim if you had to stop work - for example because you were ill or lost your job.

You can usually still complain about PPI if your claim was:

  • successful - your refund will be reduced by the amount you got from the claim
  • rejected in the last 3 years

If your claim was rejected more than 3 years ago, you can still complain if there’s a good reason you couldn’t do it earlier. You can take your complaint to the Financial Ombudsman Service if the company rejects your complaint and you don’t think it’s fair.

If you have a debt management plan (DMP)

You might have a DMP if you pay the same amount every month towards debts like credit cards, loans or store cards.

If the PPI company is a creditor in your DMP, you won’t usually get a refund - they’ll use the money to help pay off your debt instead.

You’ll get the refund if the PPI company isn’t creditor in your DMP.

If you've had a debt relief order (DRO)

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. This usually takes a year.

If you bought PPI after your DRO period ended, you can keep any refund you get.

If you bought PPI before your DRO period ended

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.

Example

Jane paid £800 on her PPI policy and gets a refund. Her refund totals £1,080 and is made up from:

  • the £800 she paid for the policy
  • £200 commission
  • £80 interest

As the refund is over £1,000, Jane's DRO could be cancelled - this means she'd have to start paying her debts off again.

If you've been bankrupt

If you bought PPI before you became bankrupt, you won’t usually get a refund - it will be paid to your creditors instead.

You’ll need to contact the official receiver before you complain about PPI - you can find your official receiver’s contact details on GOV.UK.

It’s free to make a complaint - you don’t need a company to complain for you. You might have to pay the company a fee, even if you can’t keep the refund.

If you bought PPI after you became bankrupt, you can keep any refund you get. You don’t need to tell the official receiver first.

If you've had an individual voluntary arrangement (IVA)

An IVA is an agreement to deal with your debts. You make regular payments to an insolvency practitioner while the IVA lasts - usually 5 or 6 years.

Your insolvency practitioner will usually complain about the PPI for you. If you get a refund they’ll use it to help pay your debts.

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.

Check if you had PPI

You might have had PPI if you’ve taken out a loan or bought something on credit - for example an overdraft, credit card or mortgage. You might also have had it if you’ve paid for something in instalments, like a car or sofa.

Look at any paperwork you have - like statements, terms and conditions or the original agreement. Check if they use terms like:

  • credit insurance or protection
  • loan insurance, care or protection
  • protection plan
  • account cover
  • payment cover
  • ASU or accident, sickness and unemployment insurance
  • MPPI or mortgage payment protection insurance

If you’re still not sure whether you’ve had PPI, ask the company you got the loan or credit from - you can find out how to contact your PPI company on the Financial Conduct Authority (FCA) website.

If you find it difficult to get an answer from your PPI company or you don’t have the paperwork, contact your nearest Citizens Advice. An adviser can help you work out if you’ve had PPI.

Check if your PPI was mis-sold

You were mis-sold PPI if the company you borrowed from didn't tell you about it, or pressured you into it - for example if they said you’d get a better deal.

Even if you were told about the PPI, it might still have been mis-sold if the company didn’t follow the right steps.

It’s worth complaining if you’re not sure - the company will investigate and let you know.

If the company didn’t check you were covered

The company should have checked the policy covered you. You can usually complain if you:

  • were self-employed
  • were unemployed
  • were retired
  • had a medical condition that meant the policy might not cover you

You can also complain if they didn’t ask enough about your situation - for example your work, health and money. They might have done this over the phone or in a form - sometimes called an ‘eligibility check’.

If the company didn’t explain the policy

The company should have given you all the facts you needed before you bought it. For example, you can complain if they didn’t tell you:

  • what the PPI covered - and what it didn’t
  • how much the PPI cost separate from the loan
  • that you’d pay interest on the PPI - if it was added to your repayments
  • if your PPI cover would end before you’d finished making the repayments

You can also complain if the company didn’t write to you to explain:

  • the main points of the PPI policy - usually called a 'summary of the policy'
  • if the policy wouldn’t cover you in some circumstances - called a ‘statement of demands and needs’

You can get help from your nearest Citizens Advice if you’re not sure what to do - an adviser can talk to you and look at the paperwork to help you decide.

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