By now most people are sick and tired about hearing the media harp on about PPI. It’s covered in our TV adverts, on our radios and our phones are bombarded with calls asking us if we have claimed yet. Plus, anything that could affect our loans and mortgages is a scary prospect that most want to avoid – but it should not be one of them; if eligible for a refund, you could reclaim a large sum, and who doesn’t want some extra cash? Here are some common reasons why some shy away from PPI and why they shouldn’t worry:

“I don’t have PPI, I never took it out on any of my loans!”

You may not think you had PPI attached to your credit agreement when you took it out. However, some lenders have been caught out adding it to policies without informing the customer. This is the result of sellers of PPI receiving a high amount of commission when this insurance was sold and would go to any lengths to receive their bonus.  So even if you don’t think you took it out, there is a possibility it was added to your agreement without your knowledge.

“I was told it would reduce my interest rate!”

This is a flat-out lie. If you were told this by a lender, you’re definitely eligible to get your PPI repayments refunded. Being accepted for a loan or having a good interest rate is not affected by your choosing to take out PPI.

“The lender said I must add PPI to my agreement!”

Again, lies. Any kind of insurance on products, be they material or monetary, is optional and always should be. At the time of taking the credit agreement, you were not obliged to add PPI to your policy. Yet another tactic used by lenders to get the vast amount of extra commission by attaching PPI to your credit agreement.

“What’s the problem? It’s not like I paid interest on the PPI!”

Actually, yes, you did. The lender who sold you the PPI may not have told you that it is also affected by interest. This means you’ll be paying exponentially more as the years passed. So if you’re wondering why some people have a large payout when they do file a reclaim, that’s the reason!

In all honesty, there is no reason why you shouldn’t try to file for PPI reclamation. If you go through a company, they often have a no-win-no-fee policy. However, they do charge around 20% commission for their services. Alternatively if you make the claims yourself (here’s how) you get to keep every penny of your refund. You only have until 29th August 2019 to make your claims, so it is best to start as soon as possible. Luckily, if you register with Credibble, you can see all of your credit accounts in one place.

Credibble offers two fabulous solutions

If you’re preparing to take a mortgage, never apply until you’ve tried our unique and FREE Credibble Home app. Our smart technology will tell you what you need to fix so you avoid rejection. The app predicts when you will be able to buy, for how much and tracks your month-by-month progress to mortgage success. We’ve even added your own mortgage broker, so you get the best deals available.

More focused on your credit rating? Well, get started for free with Credibble’s 24- Factor Credit Check to truly help you improve your creditworthiness and how lenders view you. (Remember: lenders don’t use your credit score! We’ll show you what lenders look for and how to get your credit report in the best shape possible).

Last updated by Oliver Macmillan, May 2022