PPI – What is it?

On the face of it, Payment Protection Insurance (PPI) sounds like a very good idea.

Payment Protection Insurance, or PPI, is the insurance that is sold alongside loans, credit cards, store cards and debt products like car finance agreements, that is supposed to cover the repayments if you can’t make them.


Make a claim for mis-sold PPI

You may not know whether you have PPI. We will find out for you, because there is a chance you may be able to claim it back if you have it. (According to The Guardian 45 Million PPI policies have been sold in the UK).


Reclaim your money back

What’s more, there’s a fair chance you were mis-sold it, and could reclaim your money back. As many as two million people may have been mis-sold policies since 2003. Look how expensive it can be!


We can help you to reclaim premiums on these policies. Insurance is a vital financial commitment and Claim4Refunds totally supports the principles of taking an affordable insurance policy to protect your family. However, not when it is expensive, hard to claim on and often mis-sold.

Clydesdale Bank, Co-operative Bank and Lloyds Bank are just some of the lenders that have been handed out hefty fines for the mis-selling of Payment Protection Insurance by the FCA:

  • The problem is firstly that PPI (payment protection insurance) bought from a lender is extremely poor value for money, with any potential benefits far outweighed by the huge cost.
  • Secondly, PPI is very often sold to people that can never claim on it. The terms are tightly drawn so that most of the instances where people hope to claim are not covered.
    Most policies don’t pay if you are:

    • Self-employed
    • Retired
    • Or stop work because of:
      • A medical condition that existed before you took the insurance
      • Stress or back problem

If you had needed to claim on your insurance policy (for instance you are made redundant or are off work with an accident or sickness) lenders make it very difficult. We understand that experts estimate that only 1 in 7 of claims made to lenders ever pay out.



Customers forced to buy and told PPI was compulsory

There has also been evidence of firms forcing customers to buy it, wrongly claiming it’s compulsory when it isn’t or refusing to give a quote without it. There are even cases where the insurance has been added without the permission of the customer.

In the worst cases, already expensive PPI is paid for up front and the money to pay for it is added to the loan you are taking out. This way of selling PPI, known as ‘single premium’, means that you end up paying interest on the cost of the insurance. When customers go to cancel the insurance they are told that it cannot be cancelled without recalculating the entire loan.

If you’ve been mis-sold PPI then you could be one of the millions of people who could AND should claim it back.

Claim4Refunds is proud to stand up for consumer rights.

If you think you may have a PPI claim – call us today! Freephone – 0800 822 3455


And remember, at Claim4Refunds it’s no win no fee † , so there is no risk to you and no expense.  Then, when we do win, ours is a competitive fee, and you win in a big way.

A Gap in the Market

In a turbulent economy incomes are no longer guaranteed or stable, we no longer automatically rise up the pay scales as we get older.

So the banks spotted a gap in the market: insurance that would enable you for a year to continue paying off your loans if you lost your job, had to take a sizeable pay cut, or succumbed to long term illness which stopped you from working at all.

PPI may have guaranteed to pay your loans while you could not.  However, there are many exceptions that would bar a claim under this insurance, relating to your medical conditions, employment status or age for example.


The banks didn’t always tell you that they were bundling PPI

In any of these cases mentioned on this page, the banks have mis-sold you PPI.  And you are entitled to recover all the money you spent on an insurance policy you didn’t need and probably didn’t know you had.
And anyway, the banks didn’t always tell you that they were bundling this PPI in with the loan or mortgage or credit card agreement. And they didn’t tell you that in many cases you might have had other provisions in place to give you the very same protection – through your contract of employment, for example, or via your partner.

  • Sometimes they would tell you, but would insist that PPI was compulsory.
  • Or they didn’t tell you PPI was optional.
  • Or they suggested the loan would be more expensive without PPI.
  • Or they made the purchase of PPI a condition of the loan.
  • Or simply pressured you into accepting PPI.

Very often PPI was simply referred to in a clause in the small print and nothing was done to bring it to your attention


Entitlement to Recover Money

In any of these cases mentioned on this page, the banks have mis-sold you PPI.  And you are entitled to recover all the money you spent on an insurance policy you didn’t need and probably didn’t know you had.