PPI Claims: Common Questions and Answers
It is now just over four years since the floodgates to PPI claims opened. At the time of the high court ruling—April 2011—it was estimated that payouts for mis-sold PPI would reach £4.5 billion.
To illustrate how far off that estimate was, you would need to double it—£9 billion—and then double it again—£18 billion—just to get to the total amount paid out so far (which is actually £18.8 billion). And the claims show no signs of stopping yet.
Recent estimates suggest the total figure for PPI claims will top £24 billion by the time the scandal has been cleaned up.
Enough with the statistics, though. How does this affect you?
Have you not yet made your claim for mis-sold PPI? Do you still have questions about doing so? This article will take you through the most common PPI claims questions and the options available to you.
The questions addressed below relate to:
- – Claiming PPI by yourself versus a PPI claims company doing it for you
- – How to claim PPI if you don’t have your account number and/or paperwork
- – How long do PPI claims usually take?
- – How much will you win back?
Ways To Claim PPI
There are basically two ways to claim PPI:
- The first is to handle the entire claim by yourself.
- The second is to have a PPI claims company handle your claim for you.
There are pros and cons to both options, which we’ll look at now.
1. Handling Your Own PPI Claims
If you’ve read other blogs about claiming back your money from mis-sold PPI, you will have probably seen the advice to do it yourself because “it’s easy to do”. While it’s true that many PPI claims are reasonably straight forward, it is also true that many aren’t.
One aspect that can affect the ‘easiness’ of a claim is whether you have your account numbers or not. This topic is covered in the next section, so we won’t go into great detail here. Suffice to say, though, that if you don't have your account numbers and you wish to claim PPI by yourself, there will be some work involved.
Even if you do have your account number and relevant paperwork, there can be times when the PPI claims process requires more time and effort than you might have. While some claims are straightforward and require little effort, there are other claims that are the opposite. These claims tend to require more ‘admin’ time than the simpler ones.
If you’re already juggling quite a lot in your life, handling your own PPI claims might be one extra chore you’d rather pay someone to take on for you.
How Straightforward Will Your Claim Be?
That's really difficult to say. There are many variables involved in the process that can affect how straightforward or convoluted a claim might be.
2. Having a PPI Claims Company Do It For You
The other option available to you is to have a PPI claims company handle your claim for you.
Having a third party take care of everything for you will, of course, involve a fee. So it’s really a matter of whether you would like to save yourself the time involved and any potential stress in exchange for a percentage of your payout. That’s assuming your PPI was mis-sold and that you win your case, of course.
One area where having us handle your PPI claims can be a great advantage is if you don’t have your account number. We’ll talk more about that in the next section, but put simply, having us handle your claim when you don't have the account number can be worth the fee in and of itself.
Can I Claim PPI If I Don’t Have My Account Number?
Yes you can. How simple the process will be, though, is largely dependent on the topic of the previous section. Will you be handling the claim on your own or will you be handing it over to us to do for you?
If you decide to have us handle your claim for you, then the process is extremely simple. The reason being is that we have negotiated a special agreement with many of the main banks and lenders. This agreement means we can get your claim started even if you don’t have your account numbers or paperwork.
The agreements vary from bank to bank somewhat, but they are all similar. Essentially, all we need from you to get your PPI claims started is:
- Your full name, and
- The address you were living at when you took out the finance
We’ll provide that information to your bank, which they will use to check their entire system for any finance agreements you may have ever had with them.
Many of these lenders will also be able to check the databases of their sister companies too. These agreements are really helping to speed up the entire PPI claims process.
For some banks, the agreement is slightly different in that they still require one account number in addition to your name and address you were living at when you took out the finance. The good news, though, is that it can be any account number that you provide.
For example, if you have a current account with one of these banks, you can just provide the account number of that account. Your bank will then use that number to check their entire database for all other finance agreements you may have had with them. As mentioned above, in many cases (but not all) they will also be able to check with their sister companies too. Here is a list of lenders and their criteria for submitting claims.
Which Banks Do We Have These Agreements With?
Unfortunately we can't publish that information on our site as it was one of the stipulations of the agreements. We have agreements with most of the main banks and lenders. If you want to check whether your bank is on the list or not, you can get in touch with us and we will let you know over the phone.
It seems a bit silly doing it this way, we know, but that was part of the agreement.
If you do get in touch to find out if we have a special agreement with your lender, you're not obligated to pursue your claim through us further if you choose not to.
Is This Agreement Available To Individuals Claiming PPI by Themselves?
Unfortunately it’s not. If you wish to claim PPI by yourself, you will need the account number for every claim you wish to make. If you don’t have it and you no longer have your paperwork, there will be some work involved to get the account number. But it is doable, here’s how:
- First, you will need to run a credit check on yourself. There are many services available for doing this and we recommend either Credit Expert by Experian or Noddle. Credit Expert has a free trial period, after which there is a monthly fee (just remember to cancel the trial before it expires). Noddle is free all the time.
- Enter your details into the system of whichever service you’ve chosen and get the report that it generates.
- Next, go through the report to look for any finance agreements that are listed, which may have PPI attached.
- Once you’ve found all the finance agreements that have PPI attached, contacted the bank or lender of that policy to ask for copies of the paperwork. The paperwork will have the account number written on it.
- From there, complete a PPI claim form for each claim you wish to make and proceed as normal.
How Long Do PPI Claims Usually Take?
Your bank has 8 weeks to respond to you in regard to your PPI claims with them. This is the timeframe set by the Financial Ombudsman Service (FOS). Due to the high volume of PPI claims that have gone before, it has sometimes taken some banks longer than this to respond to the claimant.
If your bank finds in your favour, then you should receive your refund quite soon after. Your PPI refund might be in the form of a cheque, but it might also be used to offset any existing debt with that lender.
How Much Will I Win Back?
How much you win back from your PPI claims is dependent on many variables. You have to take into account how much was paid out for the policy, how long it ran for and the type of policy it was.
It’s impossible to say in an article how much you will win back but to give you an idea, the industry average payout is £2,750. That figure is per policy, so anyone with several PPI policies that were mis-sold might be in for quite a significant total refund.
To be clear, though, your refund might be significantly less than the industry average of £2,750.
I Have Other Questions About PPI Claims
While we’ve covered the most common questions about the PPI claims process here, we appreciate you may have other questions that haven’t been covered. If so, get in touch and we will be happy to answer those questions for you.
You can either pop your details into the short form or call us on our freephone number: 0800 840 7292 (if you're calling from a mobile, call: 0161 761 8802).
If you do get in touch, you are under no obligation to pursue your claim further with us if you decide not to. Similarly, there will be no charge for answering your questions. A fee is only payable if you decide to have us handle your claim and if that claim is successful (i.e. you win a payout).