Money mensch: Reclaim on your payment protection insurance

By Martin Lewis, January 22, 2009
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Have you had a loan in the past six years? If you have, and you were sold insurance with it, it has become far easier to reclaim these policies as countless firms have been fined for systematic mis-selling of them. Payment Protection Insurance is designed to repay the loan in the event of accident, sickness or unemployment.

Whether it’s Egg, fined close to £750,000 last December, or Abbey, which was fined £7 million, big companies have been handing out these policies without any need, and you need to get your money back.

There have been several categories of mis-selling; from them telling you that the only way you could get the loan is if you had the insurance, to not even telling you they were giving you the insurance, or not checking if you already had insurance cover. The list goes on and on. Over the past year, close to 300,000 of my template letters to reclaim these policies have been downloaded and many people have received substantial payouts, ranging from £1,000 to £30,000. So, if you have a loan and feel you were mis-sold the insurance, then you should see if you can get your money back. The mis-selling has been so bad that the Competition Commission that has been investigating said they may even ban the sale of Payment Protection Insurance alongside loans to protect the public. The policy in itself is not a bad deal, but it’s better to buy the policy from an independent adviser.

To download the reclaim template letters, go to www.moneysavingexpert.com/ppi

    Last updated: 12:15pm, January 22 2009