1. What is Payment Protection Insurance?

Payment Protection Insurance (PPI) is insurance designed to cover loan or credit card payments in the event of redundancy or sickness.

2. Why are claims being made?

The Financial Services Authority (FSA) found numerous 'failings' in the PPI market relating to bad sales practices and inadequate investigation of complaints. The FSA came up with measures for PPI providers to compensate their customers for such failings. Providers initially challenged the FSA's measures in Court, but withdrew their action in May 2011. This opened the floodgates to 1000's of claims for PPI refunds.

3. Which products are affected?

FSA regulation of PPI sales commenced in January 2005. Sales of all PPI policies after this date are affected. Examples include PPI for personal loans, credit cards, home shopping, first charge mortgages, secured loans, car insurance and home insurance.

Prior to 2005, strictly, it depends whether the PPI provider was regulated by the FSA. However, the FSA has said that its measures should be interpreted as 'guidance' in relation to unregulated pre-2005 sales.

4. Did my product include PPI?

Many people will not know whether their loan or credit card included PPI. Check your policy for references to 'Payment Protection', 'Payment Cover', 'Protection Plan', 'ASU', etc.

5. Was my policy mis-sold?

Not all policies were mis-sold, but many were. Check our list of PPI selling common failings to see whether your lender was guilty of any mis-selling practices.

6. Do I need legal representation?

Legal representation is not a requirement and many people prefer to take on their lender themselves. If you plan to go down this route, it is important to be organised and to approach the matter in the correct way. We have provided a step by step guide to assist you.

Alternatively, you may prefer to have full legal representation to take the stress away from you. Be aware that many firms purporting to offer such services are not solicitors. Conversely, Winston Solicitors LLP is a firm of solicitors regulated by the Solicitors' Regulation Authority.

7. How much compensation will I receive?

The amount of compensation varies from case to case. Generally, you are entitled to be put back in the position you would have been in had you not taken the PPI. Therefore, you will be refunded the portion of the loan or credit card payments which related to PPI. More information on how much PPI compensation you can receive.

For example, a five year loan for £3000, with monthly payments of £50, of which £10 related to PPI premiums, would give you £600 compensation (£10 x 60 months). You may also be entitled to claim interest and to have any charges or admin fees that resulted from the mis-selling refunded.

Should you choose to instruct Winston Solicitors LLP, we will calculate the maximum amount of compensation to which you are entitled, including interest, and ensure that you are not 'short changed' by your lender.

8. Are there any deadlines for claiming?

You will have the longer of six years from the date of the sale or three years from the date that you became aware (or ought reasonably to have become aware) of your grounds for complaint to make a claim. If this time limit has elapsed, your lender may reject your claim without considering the merits. You should also consider whether the sale of your policy fell within the period of FSA regulation, as discussed above.

9. Are any defences available?

The main defence to a claim is that you would have bought the PPI policy in any event. There is a presumption that you would not have bought the policy but for the mis-selling, but if the lender can show that you would have bought the policy anyway, you will not be entitled to compensation. Equally, if the lender can show that you would have bought a different policy instead, you will only be entitled to the difference between the cost of the policy you bought and the cost of the alternative policy.

At Winston Solicitors LLP, we have a team of experts which is familiar with the defences raised by lenders and what can be done to rebut them.

10. What happens if my claim is rejected?

Some lenders will refuse your claim in the first instance, rather than make an offer of compensation. If this happens, do not be afraid to write again. Ultimately, if your claim is rejected and you still feel that you have grounds to claim compensation, you may refer the matter to the Financial Ombudsman Service (FOS). For more information on how to refer the matter to the Ombudsman please download our FREE Complaint Guide.

As part of the service offered by Winston Solicitors LLP, we will deal with each stage of the claims process for you, referring the matter to the Ombudsman if necessary and for no extra charge.

If the claim is rejected by the Ombudsman, you still have the theoretical right to issue legal proceedings. However, the prospects of success will be significantly reduced by the unfavourable ruling of the Ombudsman.