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Payment protection insurance - claim back for free

Date 22 December 2012

You may have been approached by a claims management company offering to get you a refund of your payment protection insurance. But you don’t need to use one of these companies to claim a refund - you can claim back the money you're owed yourself. It's free to claim, you don't have to pay a fee to anyone and it's just as quick if you do it yourself.

Payment Protection Insurance – or PPI – is insurance you’re sometimes offered when you take out a loan, mortgage, credit or store card. PPI is meant to cover the repayments if you become sick, unemployed, or have an accident. However, you may have been sold a PPI policy which isn't suitable for you. For example, you could find that your policy only covers people in full-time employment when you're unemployed, or that you aren't covered because you have to be below a certain age limit.

If you’ve been sold a policy which isn’t suitable, this is called mis-selling.You should be able to cancel the policy and get a refund, although you will probably need to make a claim for this. If you use a claims management company to make a claim, they will take a cut of around 25% from the money you get back, plus VAT. If you make the claim yourself, you will be able to keep all the money you get back.

For more about PPI and how to make a claim if you’ve been mis-sold a policy, including a sample letter you can use, see Payment protection insurance.

There is also a very easy to use step-by-step guide on how to claim on the MoneySavingsExpert website at

If you still need more help, you can go to your nearest citizens advice bureau.