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Check if you can complain about mis-sold PPI

This advice applies to Scotland

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’ve had a Debt Payment Plan (DPP) under the Debt Arrangement Scheme (DAS)

You can usually get a refund for PPI, but the creditor might use the money to pay back your debt instead. You or your money adviser can apply for a variation of the DPP to change the amounts being paid to each creditor.

You can find out more about applying for a variation to your DPP on the Accountant in Bankruptcy (AiB) website.

If you’ve had a trust deed

If you bought PPI before your trust deed was set up you won’t usually get a refund - it will be paid to your creditors instead.

Your trustee might already have applied for a refund on your PPI - check with them if you’re not sure.

If you and your trustee have been discharged from the trust deed you might not get the PPI refund - it might be paid to your creditors instead. There are some legal challenges about who is entitled to your PPI refund after discharge from a trust deed.

If you bought PPI after you were discharged from your trust deed you can keep any refund you get, and you don’t need to tell your trustee first.

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. This can happen even after you and your trustee are discharged from your bankruptcy.

Your trustee might already have applied for a refund on your PPI - check with them if you’re not sure.

If you use a claims management company to complain about PPI you might still have to pay their fee - even if the refund is paid to your creditors instead.

If you bought PPI after you were discharged from your bankruptcy, you can keep any refund you get - and you don’t need to tell your trustee first.

If you have a debt management plan (DMP)

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

If you use a claims management company to complain about PPI you might still have to pay their fee - even if the refund is paid to your creditors.

If the PPI company isn’t part of your DMP, you’ll get the refund as normal.

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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