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Scotland Wide PPI Specialists

Claiming Back PPI Compensation – the ‘How to’ Guide!

10 November 2014

Claiming compensation for mis-sold payment protection insurance (PPI) is not something that should present anyone with difficulties. The vast majority of people were mis-sold this expensive financial product but, what can present difficulties is ensuring that the amount of compensation you are offered is the right amount…

How to claim PPI compensation…

Step 1: Check ALL Paperwork

The first step is to check that you had PPI on various accounts. Check all the paperwork for credit card accounts, loans, mortgage, car finances as well as financial accounts such as store cards. For some people, when they bought new kitchen appliances they may have taken out a small loan through the shop; this will have been underwritten and administered by one of the major lenders in the UK. Check this paperwork too as PPI was often added to these accounts.

Many people will recall the 'great product' that stores offered consumers to protect their loan or purchase - this could be PPI!

Step 2: Creating a Letter of Complaint

Regardless of which account you find PPI or who the provider of the product was, you will need to prove you were mis-sold the product in the first place. You do this by addressing the issue in a letter of complaint; in order to simplify the process, each account that has PPI will need a separate letter of complaint.

There are many reasons why PPI could have been mis-sold to you:

  • You were unaware it had been added
  • You were automatically 'opted in' to the scheme without being told that you could opt out
  • You were given the impression that the purchase of the PPI product was compulsory
  • You were given the impression or told that buying PPI would stand your application in a better light; in other words, it was more likely to be accepted if you took this wise move of protecting repayments…
  • You were not told of any significant exclusions under the terms and conditions
  • You were unemployed, retired or self-employed at the time you were sold the policy

Step 3: Wait for the Reply

ALL banks and lenders, on receipt of a letter of complaint asking for PPI compensation, must respond to you within 8 weeks. Preferably, within this time, they must resolve you case and offer your PPI compensation, should you be entitled to a refund.

If you are entitled to PPI compensation, they should clearly show how they have reached the figure they have…

If they say you are NOT entitled to PPI compensation, they must also tell you, in detail, why this is the case.

But the story doesn't end there - contact Scottish PPI Claims to find out what happens next if the bank say no to PPI compensation.