We get asked a whole range of questions related to PPI Claims every day, so to make it easier for you to find out a bit more, we’ve put together this list of PPI FAQs.
If your question isn’t answered below, please contact us and a member of our friendly team will get back to you with an answer. If we think your question might be useful to other people, you might even find we add it below!
Our guide to your most frequently asked PPI questions…
What is PPI?
Payment Protection Insurance (PPI) was a product designed to cover your repayments on loans, credit cards, car finances, mortgages or store cards if you are unable to work due to an accident, illness or unemployment. Unfortunately, a number of Lenders have mis-sold PPI to consumers because the policy was overpriced, needless or unsuitable.
What kind of finance agreements can we look into?
We can check for PPI on loans, credits cards, store cards and mortgages.
How do I know if I had PPI?
In most cases PPI should be itemised separately on the statements sent by your Lender, although if you were sold a single premium PPI policy this may not be the case. If you are unsure about whether you have been sold PPI, give our team a call on 0800 08 222 00 and we’ll be happy to help you look into it.
Can I still make a Claim if I no longer have any paperwork?
Yes, we just need as much personal information as you can provide, this will help us to locate you and any PPI products you may have had with your Lender. For example, we would need your previous surname and/or address.
Can I make more than one Claim?
Yes! Typically Claimants have a number of PPI Claims across different loans, credit cards, mortgages and store cards. There is no limit to the number of Claims you can make.
How far back can I Claim?
This all depends on the Lender and how long they have retained records. We have claimed back PPI on products as far back as the 1990’s.
Can I make a Claim on a loan that has now been paid off?
Yes, if your loan has been paid off it’s the perfect time to start a Claim, fill in our PPI Claim Form now or call us on 0800 08 222 00
How is my offer calculated?
If your claim is successful, your offer of redress is based on premiums paid plus interest due and should put you back in the position you would have been in, had PPI not been applied to your lending.
What are my Tax Responsibilities following a successful Claim?
Compensation awarded to customers following a successful Claim for PPI may be taxable. Please read on to find out more:
If my PPI Claim is successful and I receive compensation, will it be taxable?
– You are required to pay income tax on the statutory compensation payment from the Lender
– Any refund of policy premiums or interest you paid is not taxable
How much income tax will I have to pay?
– In line with UK Legislation income tax will be deducted from any statutory compensation payment at the basic rate of 20%
What if I’m entitled to claim back income tax?
– If you’re a non-taxpayer it may be possible to reclaim this from HMRC (R85 forms – the HMRC form which shows you’re a non-taxpayer – cannot be accepted with this type of interest)
– You will need to contact HM Revenue & Customs (HMRC) directly in order to complete a R40 claim form
Is there anything else I should know?
– If you do not complete a tax return or you need to pay income tax at a higher or additional rate you will need to contact HMRC directly as well
Tax liability, as a result of compensation awarded for mis-sold PPI is the responsibility of the customer.
Please refer to the PPI Advice section on the HMRC website which offers more information.
You can also call the HMRC Tax Helpline on 0300 200 3300.
How will I get paid if I am successful?
Most Lenders will pay the redress directly to you, either via cheque or credit into an active bank account. Please note that if you are subject to IVA, Debt Management or Bankruptcy, it is possible that the redress will either be used to offset debt/arrears or will be paid to your Insolvency Practitioner, if applicable.
How much does it cost to make a Claim?
The Claim Guys work on a no win no fee basis. If we are successful in reclaiming your PPI, then our fees are 30% + VAT of any redress offer you receive as a result of our claims process.
Do I have to pay anything up front?
No, The Claims Guys does not charge anything up front.
Do I have to pay anything if my Claim is not successful?
No, The Claims Guys works on a No Win, No Fee# basis.
Will making a PPI Claim affect my relationship with the bank?
No. If you have been mis-sold a policy, then you are entitled to make a complaint and claim your money back. Lenders have set aside billions of pounds as they know they are responsible for the mis-selling of millions of policies, therefore completing your PPI complaint won’t have an impact on your relationship with your Lender.
Will my credit rating be affected?
No, your credit rating will not be affected by making a Claim.
How can I reclaim my PPI?
You can approach your Lender yourself and make a direct request to reclaim PPI, however, if you don’t have the time to continuously chase your Lender or confidence to be sure of the Lender’s response (whether refusal or offer) is correct, The Claims Guys are here to help. Simply fill in our PPI Claim form now or call us on 0800 08 222 00, and our expert team will take care of everything.
How do I know if I have been mis-sold?
If you believe that any of the below relate to you, then you may have been mis-sold PPI:
• You were pressured into taking the insurance as a requirement to qualify for the loan/credit card.
• You were self-employed at the time of taking out the policy.
• You had pre-existing medical conditions when you took out the policy (most policies will not allow you to Claim for pre-existing medical conditions).
• The total cost of the policy was added on to your loan at the beginning (known as a Single Premium PPI Policy).
• It wasn’t made clear that PPI was optional and that you could get a better offer from other providers.
Don’t worry if you aren’t sure where your circumstances fit in the above, these are just examples. If you fill in our PPI Claim Form or call us on 0800 08 222 00 we can go over your personal situation with you and advise whether you can make a Claim.
Can I Claim myself?
Yes, you can approach your Lender and make a complaint directly.
Are you authorised and regulated?
Yes, The Claims Guys is authorised and is regulated by the Ministry of Justice in respect of regulated Claims management activities (CRM19382); its registration is recorded on the website www.gov.uk/moj/cmr