Skip to content
Back Back to Insurance menu Go to Insurance
Back Back to Saga Money Go to Saga Money
Back Back to Saga Magazine menu Go to Magazine
Search Magazine

There's still time to claim for mis-sold PPI

Paul Lewis / 27 February 2015 ( 05 June 2019 )

Did you take out a loan or credit card before April 2011? You may have been mis-sold payment protection insurance (PPI) without even realising it. Paul Lewis explains how to find out if you were mis-sold PPI and claim compensation.

Form being filled out
You may not even be aware that you were sold PPI

The major banks are setting aside even more money to pay customers who were mis-sold Payment Protection Insurance.

In 2014, both HSBC and RBS said they underestimated the continuing number of claims. RBS set aside another £650 million in 2014, taking its total to £3.7 billion. And the UK’s biggest bank HSBC has set aside a total of £2.8 billion, including an extra £640 million for 2014.

Other banks will be reporting soon and similar increases are expected from them. More than £25 billion has now been set aside to compensate customers for the systematic mis-selling which occurred for more than a decade before it was stopped in 2011. Money is being paid out currently at the rate of more than £300 million every month.

You may have taken out PPI without realising

The average pay-out is around £1700, but only around half of those affected have yet claimed. If you took out a loan or a credit card any time before April 2011, you probably did pay for PPI, perhaps without realising it.

This so-called insurance was supposed to pay out if you could not meet your repayments due to unemployment or ill health. But it was widely mis-sold to people who could not claim and the stringent conditions were not clearly explained. In some cases, people were led to believe taking the insurance was compulsory when it was not. HSBC admitted this week it made 76% profit on the sales.

Money expert Paul Lewis To enjoy Paul Lewis' expert tips on personal finance, consumer
rights, getting the most out of your pension and more delivered straight
to your door each month, subscribe to Saga Magazine today!

Your bank can check if you were sold PPI for you

So it is worth thinking back to the loans and credit cards you took out in the last 15 years and making a claim for a PPI refund from any card provider or bank you used. Check their websites about how to claim. You almost certainly will not have any documents after all this time but the banks and card providers have to check your details themselves.

You can get guidance and standard claims letters from the consumer organisation Which?. In addition, the Financial Ombudsman will also help.

Visit our Home and Garden section for gardening guides, home improvement tips and much more.

Avoid claims management companies

Although the vast majority of claims are successful, if you are turned down, it is worth persisting and, if that fails, going to the Ombudsman. Its latest figures show it upheld nearly six out of ten rejected PPI claims in the last six months.

It is never worth using a claims management company which will be no more successful than you would be by yourself but will take about 40% of your payment.

Try 12 issues of Saga Magazine

Subscribe today for just £29 for 12 issues...


The opinions expressed are those of the author and are not held by Saga unless specifically stated. The material is for general information only and does not constitute investment, tax, legal, medical or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for your own particular situation.

Related Topics