Reclaiming PPI for free works!

posted by in Budgeting

Update: We tweeted about our team’s success in reclaiming PPI for free and it looks like a MoneyAware reader had PPI success too…

A few weeks ago we told our clients that if they want to reclaim mis-sold PPI they should use the free tools and template letters available on and Which? rather than expensive claims management companies.

However we like to practice what we preach here at MoneyAware so recently one of the team remembered a loan which he thought included PPI.

Our colleague followed the advice on how to reclaim mis-sold PPI for free and lo and behold, six weeks later he received the following letter…

Reclaim ppi for free letter

PPI reclaim letter from bank (click to view full sized image)

Reclaiming mis-sold PPI for free works. We hope that if you want to reclaim you follow our PPI guidance and claim for free.

At StepChange Debt Charity we want you to be free of debt and save money.

Written by

Tags Budgeting
  • Vivienne Robinson

    I was contacted by a PPI company who I told I was on a DM program and had debts with the RBS and Halifax. I wasn’t aware that I wasn’t to use a PPI company to reclaim PPI whilst I was on a DMP. All seemed light. The PPI company contacted me recently saying one on my creditors stated I have a potential claim but the RBS have responded to me by text saying they are investigating my claim. I remember distinctly telling them I’m on a debt management programme . I’m a Christian so I wouldn’t lie.,so can anyone advise if you me of what I need to do.? Do I contact the PPI company to tell them that I cannot persue this claim through them as I could be left with an outstanding debt with them that I can’t pay if they decided to uphold my claim and use the award to pay off some if the debt I owe them. I’ve tried calling the number the PPI company rang me on but the number isn’t ringing out and I don’t know the company name. Vivster

    • moneyaware

      Hello Vivienne

      Sorry to hear that you’re having concerns about this. We have an updated article about reclaiming PPI here:
      Reclaiming PPI on a DMP:
      If you’re on a DMP the lender may put the refund towards reducing your debt to them rather than sending you a cheque. Alternatively, if the lender sends you a refund directly, you’ll need to discuss this with your DMP provider. Your refund could help you reduce your debts or pay for essential household items which may have been unaffordable otherwise.
      For example:
      Your DMP payment is £240 per month and you have £10,000 left to repay. Assuming your creditors have stopped interest and charges, you’ll currently be debt free in 3.5 years
      If you received a refund of £3,000, then that will mean your debt free date will be a year earlier.
      Risks to consider when using a PPI claim company:
      Avoid any company charging an up-front fee for their service. You’ll end up paying a fee regardless of whether your claim is successful so you could be out of pocket
      Be aware that fees vary and most companies charge up to 40% + VAT of any money refunded. This means for every £100 you’re entitled to receive, the company will charge up to £48, leaving you with only £52
      Be aware that the lender may automatically put the refund towards reducing your debt to them rather than sending you a cheque. This means that you could then receive a separate bill from the claims company for their fee which you’ll need to find the money to pay
      Select a company authorised and regulated by the Ministry of Justice to carry out claims management activities. You can use the online search facility on the Ministry of Justice website to check a company is authorised
      It may be worth contacting the PPI Company to understand in detail what you have agreed to – have you signed a contract with them? Check what their charges and your obligations are under the agreement.

      I hope that this helps, if you are very concerned it may be worth giving us a call to discuss this further: 0800 138 1111 Mon-Fri 8am-8pm, Sat 8am-4pm