Are You Entitled to a PPI Refund?

Payment Protection Insurance (PPI) is a great benefit to have in case of accidents, illness or loss of employment. When we enter into agreements with financial institutions or vendors, we must provide proof of substantial income. They need proof that you are able to meet the terms of your agreement. Yet no one can predict misfortune. It is always good to safeguard and plan a step ahead. Instead of tarnishing your credit report, they help make payments on your behalf for up to one year.

Unfortunately PPI has gained a bad reputation. This insurance is being included in the payment agreement without the knowledge of the consumer. It is being mis-sold. Many consumers don’t have a clue as to what a PPI is. The lender’s and retailers are gaining commission for selling PPI that in many cases isn’t necessary.

Comb through the terms and agreements with a fine tooth comb. Read each and every document you are told to sign. If you come across something you do not understand, ask for clarification or seek legal consultation. Know your needs, don’t let anyone else determine what they are.

If you have been sold a PPI here are some signs it was mis-sold:


  • You weren’t told it was an option. You thought it was mandatory.

  • If the terms and conditions were unclear or misrepresented

  • Implied in any way that you would be saving by taking the insurance.

  • You were told that it would help you get approved.

  • You felt intimidated by the sales person.

  • You were obligated to purchase.


If you have applied for a loan or payment agreement within the last 20 years, it is highly likely that you were mis-sold a PPI. The good news is that you can recover these funds. Call your lender’s customer service line and inquire as to whether you were ever covered by a PPI, you can also request a copy of the agreement. There may be a fee, but they are required to fulfill your request.

You can then request a refund. Some lenders provide the option to claim back PPI funds by phone. Be clear and concise whether verbally or in written form as to why you feel you deserve a refund. Most lenders aren’t putting up a fight and those that do, usually back down when challenged. If you seem to be running into a brick wall, the Financial Ombudsman Service can advocate for you and assist with getting what you are owed.