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Claims Management Companies are taking the PPI

Hand pouring money into another hand

Claims Management Companies will be delighted by today’s news that banks won’t be appealing the PPI ruling. But since you could easily claim the money back yourself, is it worth using them at all?

A quick recap: consumers who were mis-sold Payment Protection Insurance (PPI) can now, after a long court case, get their money back.

Not only that, but the banks have been ordered to contact affected customers to tell them they might have been mis-sold.

Are Claims Management Companies necessary?

This is great news for consumers – individual PPI refunds could easily run into the thousands of pounds.

It’s also good news for Claims Management Companies (CMCs), who offer to ‘handle’ your claim for you – they do all the leg work, and you pick up a cheque (minus their fee, of course). Today’s announcement that the banks won’t be appealing the court judgement means these companies will be ramping up their marketing, ready to cash in on the news.

But is it really so hard to get your money back? Well, no. Anyone who’s ever written a strongly-worded letter can put in their own PPI claim without using a CMC.

You simply complain to your bank, wait for their response, then complain to the Financial Ombudsman Service (FOS) if you’re not happy with their response, or if you don’t get one in the stated time. Which? has even developed a handy PPI tool to help you craft the first letter.

Should I claim back my PPI?

Sean Scullion, who now works at Which?, was mis-sold thousands of pounds’ worth of PPI in 2005. The insurance, he was told, would protect him if he lost his job.

Unfortunately for Sean, he was a contractor and therefore excluded from the cover, a fact which the salesman neglected to tell him at the time. So when he was unemployed for three months he discovered that the thousands of pounds he’d spent in PPI didn’t entitle him to any help.

Although Sean felt helpless at the time, he’s now been able to put in a claim to get all of his PPI back – without using a CMC. Because he hasn’t used one, he’ll be able to keep all the money the bank pays back, without having to give a large cut to another company.

DIY financial complaints

One of my favourite things about the internet (leaving Twitter to one side, of course) is the sheer amount of help available on really complex subjects. Using just the power of Google I’ve learnt to build websites from scratch, make the best banana bread in the world, prep coaxial cable and even refer a dodgy estate agent to the Ombudsman.

And finance is no different. All the info you need to make a PPI complaint is online, so luckily PPI is no longer a tricky issue, so it does look like Claims Management Companies are a bit redundant.

But perhaps I’m wrong – are you keen on a bit of finance or complaint DIY? Or do you think it’s worth paying for someone else to do it while you put your feet up?

Karen says:
4 January 2013

Hi – I hope you can advise me regarding a Paymentshield PPI policy sold via a broker.
I have been reading some of the posts re PPI claimback as I have an issue with my PPI policy – I dont have my docs in from of me but the policy was sold to us via broker in 2006/7 who has since gone out of business and its with Paymentshield. At the time we were advised we needed to take it for the mortgage and that because my husband as self-employed and I was employed – he would not be able to claim – so we should have the policy in my name only – which we did. Since then I left my full time job and became a self-employed contractor. I called to cancel my policy on a number of occasions only to be told that I would definately be covered if I was out of work even though I was on 6 month contract – but this seems to be a very vague area. So each time I called I was talked out of cancelling and was told that I would still have to pay the full years premium anyway so may as well leave it in place. I also explained that in the event of being out of work I would be able to cover my mortgage payments and didn’t need the policy – but on each occasion was persuaded to keep it in place.So for 4.5 years I was a self-employed contractor (on 6 month renewable contracts) and have now recently become an ’employee’ with a company but on a 12 month fixed term. I decided now that I really dont need to keep paying the premiums as I just feel that when it came to make a claim there would be some loophole that would mean I wouldnt be able to claim plus I could cover my mortgage. So I have now cancelled my policy (after at least 15-20 minutes on the phone with a very vague young man who did not seem at all sure of whether I would be covered or not – referred to his team leader – came back and said he thought I would be covered and again tried his best to persuade me to keep the cover in place) He advised that if i was given notice within the 6 month contract i would be able to claim for the remaining term of the contract after ceasing trading with hmrc etc but that if i was unable to find my next contract after the 6 months – I would not be covered for this – which really is no good to me. After cancelling I asked regarding claiming back my PPI as i feel that the advice we were given by the broker that we had to take it and the subsequant phone calls trying to cancel the policy due to my change in circumstances – mean that we shouldnt have actually taken the policy out in the first place and then were persuaded to keep it in place despite telling them I didnt need the policy. Paymentshield said that I cannot make a claim directly to them as we were sold the policy by a broker – who is now no longer trading. There is no information on their website on how to go about making a claim in this circumstance and the customer services representative had no information other than to tell me the brokers name and phone number (not much help). How would I persue a claim in this instance – where would I send it? and is it a very arduous process due to the broker no longer trading? Hope you can advise

Henry says:
14 March 2013

Try the FSCS or a good CMC

Hi how have you got on with this as my broker has gone out of business

Hi Karen, as ever all insurance company’s are very pleased to take money from you, but when it comes to paying out or refunding is another matter. In my similar situation, I stopped paying the extra on my mortgage. I did a quick calculation making payment for my mortgage only, by altering the amount of my Direct Debit via the bank. At the same time I transferred my mortgage to my present bank, who took care of the details. I received several letters from the broker and my previous bank, all asking me to pay the difference, which I naturally refused. I was not defaulting on my mortgage payment, and a court ruled in my favour It is your money and you are entitled to spend it in whatever way you wish..

PPIed off says:
7 January 2013

Hi I have in the last 2 years been through the self claim route. Was rejected on 2 out of 3 claims, got an offer which was low. I have been through the PPI claims with the Nationwide and Capital One. and then to the FOS who seem to side with the financial institutions and then I appealed to the Ombudsman. I used FOS technical notes which confirmed my eligibility. Have been rejected by the Ombudsman not convinced whether they took note of my points. Even though they acknowledged it was not clear nor explained to me. I am determined to reclaim what is owed as I would have never signed up for PPI as statements such as “peace of mind” etc are going to to persuade you. What is my next step- lawyers and court!

Gary says:
15 January 2013

I took a Mortgage protection Insurance from ABBEY NATIONAL LIFE INSURANCE when applying for an extension on my mortgage in 2002 when I was told that the mortgage would only be authorised with the addition of this policy. The policy was cancelled in 2010 but I now believe this to have been mis-sold. The policy was later passed on by Abbey National to ‘ROYAL LONDON MUTUAL’. I have applied to Abbey National (Now Santander) for compensation and have been turned down. They say there is no record of a policy being sold, despite the fact that I have numerous Bank Statements which clearly shows a reference/policy number & monthly payments to ‘Abbey National Life’ for £28.86 per month. What should I do ? Am I right in applying to Abbey National who held this policy for the larger part of the length of policy or should I be applying to ROYAL LONDON instead.

Mairi says:
1 September 2013

Hi, I am in a similar situation with Abbey national life which was sold to Royal London can you tell me how you got on? many thanks.

Dawn says:
19 January 2013

We are trying to make a claim through Yorkshire bank for mis sold pip. We have both phoned and written and received a number of responses:
The time difference is not a big issue ( the loan was around 2000/2001)
They can’t find any records as its longer than 7 years ago, we have provided account numbers
Our claim is being investigated and they will respond in 4 weeks

So, we’re very unclear!

What do you suggest we do, I do to want to sit tight for 4 weeks, as I’m not sure what response to listen to.


Michelle says:
22 January 2013

I took out mortgage payment protection when I bought my first house with my ex partner about 19 years ago. I know that I was mis sold the insurance and am in the process of putting a claim in and it is with the financial ombudsman.We were only together for 18 months when we split up and I continued to pay the insurance but in my own name until I met my husband and was advised that he be put on the insurance as he was on the mortgage.I have been told that I will need my ex partners signature on the claim to continue in case the company refuse to make any payments if I win. As I have not seen my ex partner since he left I do not even know how to contact him and we split on bad terms.Is there anything that I can do as I offered to take the claim from when I was the sole name on the insurance but have been told that I can’t.

R Scott says:
31 January 2013

Dear Sir/Madam

I am wondering if anyone can give me a rough idea of how much I could receive back in my PPI claim and how they calculated it.

I took a loan out in March 2003 with Welcome Finance, Loan amount £3200.00.

H Burnell says:
25 February 2013

Dear Sir/Madam
I took out a HP agreement on a second hand van in 2004 I was offered and advised to take out credit protection insurance as I was self employed the account has now been closed for five years
I recently contacted the finance company by phone and sead that I was not mis-sold this policy I still have all the documentation. Do you think I have a claim

J Vasey says:
27 February 2013

We took out a mortgage with Nationwide about 8 years ago and their financial adviser strongly advised and convinced us to also take out what he called insurance on our income, which we did. We have been paying this by direct debit and never thought of it as PPI. We have however recently received correspondence and statements from the company this insurance is with (Cardif Pinnacle) and they have now started calling it PPI. Also, my husband suffers from asthma but we can’t recall him being warned about certain conditions being excluded from cover. We were wondering if we have a basis for a claim.
Jo Vasey

Andrew Lyne says:
11 March 2013

He I took out a mortgage with the Woolwich in 1981 and had to take out a seperate mortgage protection insurance with Legal & General. Over the years weI re mortgaged and were persuaded to take an endowment mortgage which again was conditional on paying a protetion insurance this continued until we managed to pay off the outstanding ammount in 2008. It was made clear that the loan would not be granted unless we took the insurance product offered by the lender. I did ask not to have this as I was a serving police officer and my job was secure and i had insurance cover provided by the police Federation however the answer was not loan without our chosen insurance provider. Do I have a claim now for PPI and if so who against as the Woolwich has long since gon regards Andy.

richard atkin says:
17 March 2013

hi there, i took a morgage out with woolwich about the same time and apparently barclays financed the morgages for the woolwich

peter says:
13 March 2013

lost my rag today after 2 weeks of harrassement from a ppi claim back company. basically they rang every day at 1145 am saying i was owed compensation for ppi on a loan. well basically ive only had one loan in 25 years with no ppi on it. they denied making the calls even tho the number was the same every day and on a few days it was the same operator. any idea how to stop these calls other than turning the air blue.

denise says:
7 July 2013

I was contacted by a ppi claims company several months ago, they told me they would handle my claim and keep me informed of all developments I’ve heard nothing from them since.
I then had a letters from my banks saying they had received my complaint but as the claim company didn’t have a valid letter of authority they would not discus my accounts with them, then I received letters from the banks saying that they had cancelled the original claim and opened a new claim and the would be corrisponding with me directly, now I have received an offer from my one bank and a no win letter from the other and still I’ve heard nothing from the claims company what do I do?

Amanda says:
26 August 2013

i need some advice if possible. my ex husband and i divorced in dec 2009 and all monies, although not much, were divided after all the debts etc were paid off. i never made a claim against his pension or anything else. over the 14 years we had mortgages, my name was always on them. we changed them frequently at 1st as a friend of ours was a financial advisor and he said that we would get better deals every 2years. yesterday, after 2yrs of no contact, he gave my son paperwork relating to ppi claims and asked me to sign it. my name was not on there, yet it was on every mortgage. can he do this and if so can i stop it so i can get my equal share. any feedback would be appreciated. many thanks

mk20 says:
27 August 2013

Thank you Which Magazine!!! I used your letter template to reclaim ppi I was wrongly sold and just before I went on holiday I received a letter which said…’without accepting liability we wish to make a goodwill offer of £2000.00!!!!!

I was so delighted.

Thank you.

Mk x

Twish says:
5 October 2013

I have just finished paying of my mortgage and payed 40pounds a month on insurance during that time.At the start of the mortgage i was informed i had to take this in case myself or wife passed away and the mortgage would be payed off.Can i claim.

Maureen says:
13 December 2013


I have recently been sent a letter saying i an claim but PPI from a loan i took out in joint name 6 years ago. I am now divorced is my ex husband entitled to half of the PPI refund please?



need advice help says:
7 June 2014

hi I authorised a PPI claims company to act for me on one credit card in a joint claim with my ex wife i signed the form with the acount number on for my credit card but this was not uphelp my ex wife asked them to chase a joint morgage ppi claim but i never signed any consent forms turns out the ppi claim was in my name only i have now been contacted by the claim firm and the bank with offer of 4k and a £1300 bill from the claim firm
i have asked them for a copy of the consent form i signed with the details of the morgage ref numbers on it they have only sent me another copy of the bill and a copy of my consent form with the cc acc number on it
do i need to pay £1300 if i didnt sign to agree to the new ppi claim ?

thanks for any help

Hi, sorry for the delayed reply. If you signed a contract, there may not be much you can do.

However you could, after 8 weeks, escalate this to the Financial Ombudsman Service – here’s how – http://www.which.co.uk/consumer-rights/problem/can-i-take-my-financial-complaint-to-the-financial-ombudsman

AMackay says:
19 July 2014

I engaged LionClaimline re multiple PPI claims in September 2013– no awards yet- but they have sent me a letter informing me they are now Blacklion Law LLP. Can anyone tell me how long I am locked into a contract with them — are terms of engagement time limited? The tone of the letter is certainly that I must agree and sign up to the new company. Can anyone advise please?

karl says:
10 July 2014

hi i took a mortgage with woolich back in 1994 it has finished recently and i did ask regarding ppi and was told that i am not owed any, how can i believe they are telling the truth, also i think eventually Barclays took over woolich mortgages,

could you please help with any phone number’s or places that i should br rinning to get more info.
thank you

Sallym says:
10 July 2014


I have a number that I called it is 08457 555555. I think they transferred me even though this number was supposed to be a dedicated PPI number.

I was also told I had paid no insurance by Barclays.

AMackay says:
19 July 2014

I engaged LionClaimline re multiple PPI claims in September 2013– no awards yet- but they have sent me a letter informing me they are now Blacklion Law LLP. Can anyone tell me how long I am locked into a contract with them — are terms of engagement time limited? The tone of the letter is certainly that I must agree and sign up to the new company. Can anyone advise please?

rob doore says:
2 October 2014

Hi,I was wondering if I could claim back ppi if I had it on my old mortgage,I got a mortgage in 2001 and then paid it off in full at the start of 2006 when I sold my house,I was an self employed taxi driver at the time I took it out to selling the house and it was a self certified mortgage,do you think I have got a chance of having mis sold ppi on it? Thanks Rob.

Cbergenroth says:
28 November 2014


I had a credit card with firstdirect from 2002 and I have only just realised I was paying PPI , I have applied for a refund as never knowingly signed up for it….I heard today that my complaint was upheld,
I was paying approx 20 pounds a month….does anyone know what iam likely to get….I am now on 3000 in debit on my credit card!

Thanks so much xxx