PPI Reclaim

What Is PPI?

PPI stands for Payment Protection Insurance.  It is a type of insurance offered on a number of financial products. If you’ve ever taken out a loan, mortgage, credit card or store card, or bought something on credit, then the chances are someone tried to sell you Payment Protection Insurance (PPI) at the same time.

In these situations, the insurance will cover the repayments to prevent the individual from falling into debt through missed payments.

The insurance is charged at a fee on-top of the loan repayments, meaning that borrowers pay a higher repayment value each month in order to receive the protection.

The idea is that PPI covers your debt repayments if you can not work  for example, if you become sick, have an accident or if you are made redundant. However, many PPI policies have been mis-sold, which means you might spend a lot of money on expensive insurance you will never be able to claim on.


PPI Miss-selling Scandal

Payment Protection Insurance,  has been sold by many companies against loans, mortgages and credit-cards. Sometimes people are misled into thinking that PPI is an essential part of the loan, sometimes our customers find that PPI has just appeared without them asking for it.

Often PPI has been sold without the salesperson checking first that the policy is suitable.


What payments are covered by PPI?

Repayments for the following products can all be covered by PPI:

  • Mortgage repayments
  • Loan repayments – irrespective of value
  • Store card repayments
  • Credit card repayments
  • Cars & motorcycles on purchases on credit
  • Other types of hire purchase
  • Funeral plans
  • Wedding plans
  • Any other forms of credit or money lending agreement which requires repayments

Is PPI Compulsory?

This type of financial product is purely voluntary. It is never a requirement and a borrower has every right to say they do not want it.

Furthermore, despite what many lenders told borrowers, agreeing to buy PPI will NOT improve your chances of being approved for a loan.

Some customers were wrongly advised that they would stand more chance of being approved for credit if they took out Payment Protection Insurance. But whether or not you take out PPI has no bearing on the lenders decision to advance you the loan or not.


What does PPI not cover?

Usually, it won’t cover:

  • The first 90 days after you stop working – you need to be able to keep paying for this period yourself
  • Many illnesses – check the list in your policy before you buy
  • Pre-existing conditions
  • People who are over 65 retired
  • Under 18
  • Part time worker – who works less than 16 hours a week
  • Self employed
  • Temporary or contract workers

Who does not need payment protection cover?

You probably don’t need payment protection insurance in these situations:

  • You could get by on your sick pay. You have an employee benefits package which gives you an income for six months or more, so you can keep up your payments.
  • You have enough in savings to keep up with payments.
  • Your partner or family would support you. Perhaps your children are grown up and your partner has enough income to cover your mortgage and other debt repayments.
  • You only have spare cash for basic insurance, like car insurance or buildings and contents cover.

The Pros

  • It can ease your money problems if you’re made redundant during a recession or period of job uncertainty, when it might take you longer than you would normally expect to get another job.
  • If you have little or no savings and quite a lot of debt, and you need to pay your mortgage (or any other loan secured on your home), then mortgage payment protection insurance can help.

The Cons

  • PPI policies only cover a specific debt – say, your current credit card bill. If you spend more on another card, the extra debt won’t be covered. If you claim, the money will usually go straight to pay off that debt – you can’t use it for anything else.
  • Depending on the policy you may have to wait up to 90 days before you can claim – by which time you may have found another job, or you might have got better and gone back to work.
  • You pay every month while your loan, or mortgage payments last – which can be up to 25 years. But if you claim, you only get payments for one or two years at most, depending on your policy.
  • If you’re self employed or work on contracts or do any temporary work most standard policies won’t cover you.
  • Most policies won’t cover you unless you’ve been employed solidly for the previous 12 months (six months in some cases).
  • Most policies have an exclusion period – if you become unemployed within three to six months of taking out the policy, you won’t be able to claim.
  • Not all illnesses are covered – you might not be able to claim for things like back pain, stress or pregnancy-related illnesses, mental health issues, depression, or illness caused by alcohol or drug abuse.
  • The price and cover can change at any time. Your insurer just has to give you notice and they can increase your premiums or reduce your cover.

So how do I know if I was mis-sold PPI?

PPI may have been mis-sold to you if it turns out that the policy is not appropriate for your needs. Please click on the button below to see if you qualify for PPI reclaim.

What does this all mean


Fact is that since 2001, a staggering 34 million policies have been sold. As a result the banks and building societies have at present set aside £17 billion for compensation! This huge figure is set to rise as more and more people come forward.

To put it in context 1 in every 3 people in the UK are affected. So it should matter as there is a chance that it affects you. So let us help you get back your ppi reclaim money that is rightfully yours.


Claimspower will investigate on your behalf and submit a PPI  reclaim if necessary and get your money back with 8% statutory interest added on the money that you are owed. Make your ppi reclaim today.

Check if you Qualify Now