How to reclaim your PPI premiums

Here’s our guide to getting your money back, plus the interest you could have been earning on it. 

1. Do I have a valid claim?

PPI is supposed to cover loan repayments if, for example, you lose your job, or stop working due to illness.

But in many cases it was sold inappropriately. You might have a claim if the lender (or financial adviser) didn’t explain:

  • the insurance was optional.
  • significant policy exclusions, such as against pre-existing medical conditions, those who are unemployed, self-employed or retired, and age limits - most policies have an age limit of 65 or 70.
  • you would pay your premium as an up-front lump sum.
  • your premium would be added to your loan, increasing your interest payments.
  • that your insurance might not cover the full period of your loan (most single premium policies only last for five years).
  • the level of commission it would earn from your policy (i.e. if you think your lender earned a high level of commission (50% or more) and this was not made clear to you when you bought the policy).
  • …or provide evidence that the policy was suitable for you.


In addition, if there was any suggestion made that the insurance would improve your chances of getting credit, that’s also grounds for complaint.

If you’re unsure whether or not you bought a policy, trawl through your paperwork to find out. Your bank, building society or credit card provider will hold records for up to six years, but there’s no harm in asking it if it’s got paperwork going further back in time. 

2. Does the type of premium make a difference?

If you have a single premium policy, rather than a regular premium, this may also be the foundation for a refund. The Financial Services Authority (now replaced by the Financial Conduct Authority) and PPI lenders agreed in March 2007 that borrowers who had cancelled their single premium policies should be refunded, overturning a previous no-refund policy on these contracts. This means that if you've cancelled a single premium policy for any reason, you can claim a proportional refund, plus interest.

The Financial Ombudsman Service says the majority of complaints that it upholds are related to single premium policies sold on unsecured loans.

3. How can I get a refund?

Write to your lender and ask for a review. You can download a template letter at the end of this article.

You DON’T need to use a third party reclaim company to make a claim, as at the least it will take a large chunk of any compensation you get.

If it rejects your request or doesn’t respond within eight weeks, take the matter to the free Financial Ombudsman Service. 

You can also escalate your case to the Financial Ombudsman Service if your bank offers a settlement but you think it’s less than it should be, although bear in mind the amount you’re offered might depend on whether you’ve previously made a claim or not, or if you owe the bank money. 

If you want to check the costs of your policy, ask your lender to send you a breakdown of your account - without paperwork a refund may be trickier. Following a ruling by the Financial Conduct Authority, all claims must be made by 29 August 2019

Your Comments

Is it possible to claim after the death of the person who had paid PPI - he was retired and terminally ill but at the time he died no longer had PPI. We have some but probably not all of the old statements with PPI on.

I have had a credit card for 12 years and have been self employed for
that time I am been paying ppI

The terms and conditions have changed over that time but i have been paying it for the whole 12 years

Is it possible i can get a refund for the early years when as a self employed prson i could not have claimed

My wife and had a loan with HFC about 13 years ago, we tried to claim 3 payments back when my wife had an accident and was off work for 3 months, we filled in the ppi claims form given to us by HFC but never recieved a penny,we eventually took out a bank loan and paid off our loan with HFC.
Do I still have a ligitimate claim and how would I retrieve any account/ppi numbers from HFC which no longer trades in my area?
K raine

When I took up a mortgage from a well known bank, I was forced to take up insurance for the mortgage, in case of illness or redundancy. Despite my complaints, I did pay insurance on my mortgage up until I settled it on my retirement.
I've been to the bank concerned, and they are very negative and say they cannot find any paperwork related to it, even with the mortgage details which I've given them.
What else can I do? Please help.

Mr Raine,
You might hit two objections with those claims:
Firstly, you can only claim back as far as the lender has been regulated, most major banks were regulated on the 31/01/2001, anything further back than that and the banks will be unregulated and could basically get away with mis-selling. Unfortunately most lenders didn't become regulated until 2004.
Secondly, if you try to claim back this insurance yourself and the bank/lender rejects the claim, you have a 6 month time frame in which to present your claim to the financial ombudsmen service. After this time period, you will be unable to proceed any further with your claim for mis-selling.
Hope this helps, and sorry it's nearly a year late!
Kind regards,

Dear Money wise. Once I had a Phone call asking me about PPi. When they went through the details the could not believe how many accounts I did have. They were so excited about taking my case on because they had worked out I was entiltled to 20000+ in claims. I have no information on any of the 87 accounts I have had in the past. So claiming PPi is a no brainer and I wish the banks just came clean and refunded the money that they owe to everyone.
So therefore there is no point in using your template to make any claim. I do not have the information. Period!!

It doesnt matter how long ago your were missold the PPI, you can always claim if you still have the proof.  The Bank is only required by law to keep records for six years; so beyond that, the burden of proof is upon you.  
If the bank refuses to make restitution, then you can take it to the ombudsman.
If the 6-month deadline for complaining to the ombudsman has passed - DON'T WORRY.  All you have to do is make a fresh application to the bank, and if the bank refuses again, now you have a fresh new 6-month period to appeal that refusal with the ombudsman.
Don't let the "experts" fool you into thinking you need them; in my experience they're mostly like the Wizard of OZ, all bluff'n'bluster.
Unless of course you're incompetent, in which case, better to just hope they like you and accept whatever nonsense they feed you.