PPI questions answered by an expert

David Cresswell of the FOS answers your questions on PPI mis-selling

Millions of people will receive letters in the coming months from their banks.

They will be told they may have been mis-sold a payment protection insurance (PPI) policy some time in the past.

And that they could be in line for a compensation payment - if they lodge a complaint.

It is part of a campaign <link> <caption>ordered by the authorities</caption> <url href="http://www.fsa.gov.uk/library/communication/pr/2012/021.shtml" platform="highweb"/> </link> to make sure anyone who has been mis-sold a PPI policy is compensated.

What should you do if you receive such a letter?

What if you have previously complained, but been fobbed off by the bank?

What if you do not receive a letter from your bank, but still think you may have been a victim in the past?

David Cresswell, of the Financial Ombudsman Service - an independent mediator of financial dispute cases - answers some of your questions.

What constitutes a mis-sale?

<paragraph>I have had three consecutive loans, the first starting in 2001 (60 months), 2002 (60 months) and 2005 (84 months), with Lloyds TSB. Looking back over the individual paperwork, all three appear to have what they call 'optional protection insurance' added.This was despite the fact I was a retired staff member (made redundant at 50 with pension) and then being employed continuously at a university until retirement, at the age of 62 in September 2010, with another pension. How do I know if I received poor advice from the bank? Dave Butcher, Milton Keynes. </paragraph>

<paragraph>I had PPI on a credit card which only cost me £45 per year, for three years until I paid off and tore up the card. i was self employed at the time.I have asked MBNA for a refund on this money, they sent me an illegible copy of the agreement I signed, and told me that because I signed the agreement I am not entitled to claim. Phil O'Sullivan, Bristol.</paragraph>

<paragraph>I made a PPI claim against Nationwide after being made redundant a few years ago. After completing the paperwork including copies of passports etc I was informed that as I made a claim then I must have understood the details of the PPI sold to me. However they were not explained at the time of my mortgage renewal.Only when I needed to make a claim did it turn out that I would not be able to receive any mortgage cover payments for five months. Surely making a claim, and only then finding out that I was not covered, does not constitute a valid reason for my claim to be rejected? David Bullock, Swindon.</paragraph>

How to complain

<paragraph>How do I go about asking Mint and Virgin Money to investigate the PPI I was sold? Claire, London.</paragraph>

<paragraph>I believe I have a claim for PPI mis-selling but am not sure how to pursue it. I have received numerous phone calls from so-called experts who will act on my behalf, but the fees are ridiculous. I would like to try myself but I am not sure how to proceed. Mark Bass, Telford.</paragraph>

Time-limits

The Financial Services Authority has pressurised banks into writing to many past PPI customers

<paragraph>I was sold PPI in 1990 as part of my graduate loan. I was told that although I did not need it, it would help them view my loan in a more favourable light. Can I still claim back these payments as I now believe it was mis-sold and not in my best interests at the time of selling, even though nearly 22 years have passed? Bob Smith, Manchester.</paragraph>

<paragraph>My husband has had a credit card from HSBC and they charged him payment protection insurance, even though he never asked for it, until the end of 2004 when he spotted the charge and told them he did not want it. I still have the credit card statements but is it too late for him to reclaim? Sandra Simmons, Stafford.</paragraph>

Missing paperwork

<paragraph>My dad is self-employed and was forced to take out PPI on multiple loans over the past 15-20 years. I would like to ask what proof or documentation does he need in order to put forward a claim as he no longer has any paperwork from the banks? Do the banks retain copies of agreements that the ombudsmen can then get access to? Mr Saleem, Loughborough.</paragraph>

<paragraph>I took out a loan with Abbey National back in 1995. I have lost the exact details of the loan, I have written to the Abbey National archive department, but they have no records of my loan. Do they have to keep records going back this far and is it too late to make a claim? Jonothan Symons, Epsom.</paragraph>

<paragraph>I am pretty sure that I had PPI on a Capital One credit card some years ago, but no longer have any paperwork. I have tried obtaining credit records from both Equifax and Experian, but neither show the details as it was over six years ago. Please can you tell me how I can obtain any details so as to apply for an investigation? Ian Penrose, Newbury.</paragraph>

<paragraph>I was obliged by my bank (HSBC) to take out PPI against a couple of loans back in the 1980s. Unfortunately I do not have any paperwork detailing the loans and am not sure of the dates. Do I go to HSBC for details? Caroline Wilke, Llandrindod Wells.</paragraph>

<paragraph>I believe I had a PPI policy back in 1999-2000. Upon being made redundant in March 2000 I tried to claim but the policy refused to pay out claiming that it did not pay out against redundancy. The insurer was Alliance & Leicester. As the policy was obviously not fit for purpose and not suitable for the purpose I cancelled it shortly afterwards. What do I do as I no longer have any documents relating to the policy? Adrian Malpass, Cheltenham.</paragraph>

Do I have PPI?

<paragraph>I am unsure if I was charged PPI on a loan and a mortgage. Now I do not know if I should contact one of these ads on the TV or not and what kind of information you need. I have had a mortgage that is up in six years that I have had for 10 years or more. I also had a loan for a car, that is now just paid off, that I took out five years ago. What should be my next step? Howard Smith, Edinburgh.</paragraph>

<paragraph>Where if anywhere will the PPI show up on my credit card statement or is it hidden? Nigel, Epsom.</paragraph>

Finding old customers

PPI was designed to assist those who lost their jobs or fell ill

<paragraph>If you have moved and changed lenders or credit cards how will the banks locate you? Mark Collins, Hitchin.</paragraph>

<paragraph>What will happen if I have moved home and married since the loan was paid off? Will the bank just send the letter to my old address and name?Christine Eady, Southport.</paragraph>

<paragraph>Is there a time limit? I know I was mis-sold PPI in June 1997. I cannot remember who the lender was. Will they now contact me? Nigel Whitaker, Preston.</paragraph>

Is it PPI?

<paragraph>I have been paying insurance for approximately 12 years to cover my overdraft facility on a business account, is this the same as PPI? Dave, Shrewsbury.</paragraph>

<paragraph>About 10 years ago my wife and I bought joint life insurance (to cover a mortgage in the event of one of us dying) from Lloyds TSB. Looking at the policy document it has become clear that bundled in was something that feels like payment protection insurance, i.e. if we got sick and could not work there was an additional policy that would continue to pay the insurance premiums. Would we be able to claim under PPI? James Wagstaff, Princes Risborough.</paragraph>

<paragraph>I think I may be charged PPI by the catalogue company I use. Is it possible to claim back PPI from it? Samuel Craig, Norwich.</paragraph>

Mortgage PPI (MPPI)

<paragraph>My husband and I switched to a Woolwich Offset mortgage (organised in a local branch at Barclays) in February 2004. Since then my husband has been paying £92 per month for a 'MortgageCare 1" policy with a monthly benefit of £2,000. We think we were misled into believing this 'insurance' was mandatory. Could this fall into the category of a mis-sold PPI policy? Sue Whittaker, Bromley.</paragraph>

Tracing the business

Lloyds has had to set aside £3.2bn to pay for the cost of PPI compensation to its customers

<paragraph>I took out a secured loan brokered by Ocean Finance, (the loan being with i Group now GE Money). I have just found out that the PPI only covered me for the first five years of the loan (I am seven years into the loan) and I am still paying for the PPI. Can I claim mis-selling and if so who do I claim against? I ask this as Ocean Finance was wound up in, I believe, 2006 to be replaced by Ocean Finance & Mortgages. James Killman, Worksop.</paragraph>

<paragraph>I was sold PPI when I signed up for a credit card approximately eight years ago. I know I did not ask for it, and can only recall being told it was a small amount per month, which seemed reasonable at the time. But this became a large part of my monthly payment. I do not remember other specific details about me signing up but eventually cancelled in 2010. I had thought I had previously asked for it to be cancelled but cannot be certain of this. The account was with Abbey, which later became MBNA. Is it worth putting in a claim, given I am uncertain of the details? Alex, Yarm.</paragraph>

<paragraph>I took out a loan with PPI with the Household Bank. I am aware this bank no longer exists but I am under the impression it was taken over by another company? I think this may have been 10 years ago so I do not have any documentation. Is it too late now to claim? Helen, Portsmouth.</paragraph>

<paragraph>I recently discovered the PPI which I believed would run for the life of the loan (taken out in 2005), and was paid in one go, only ran for the first three years of the loan. I checked all the paperwork and nowhere does it say the PPI would only run for three years. I contacted the loan company who said it was to do with the broker. The broker said it was nothing to do with them but was to do with the PPI supplier who went bust or ceased trading in 2006. Where do I stand? Tracy, Broadstairs.</paragraph>

IVA or bankruptcy

<paragraph>In Jan 2011 I completed an IVA. Can I now legally reclaim mis-sold PPI policy premiums for loans and credit cards that were included in the IVA? Mike Piper, Barry.</paragraph>

<paragraph>I know that I was mis-sold PPI when I was self-employed. But I went bankrupt in 2009 and I feel it is not worth trying to claim as they will keep the money as I owe them for past loans. Or can I still claim? David Titchen, Canvey Island. </paragraph>

Redress

<paragraph>I had payment protection for a few months when I got my mortgage. Am I able to claim and will my compensation for the actual amount I paid over the few months or will it include extra for the inconvenience? Aziz Khan, Bradford.</paragraph>

<paragraph>I took out a loan with Lloyds banking Group worth £25,000 seven years ago and I am still paying for the loan. I am not sure if I took out an insurance at the time. Could you please advise if my loan can be written off, if I have taken out a PPI without full knowledge? Can I also claim back the monthly PPI payments for the past seven years? Salik Ahmed, London.</paragraph>

<italic>The opinions expressed are those of the author and are not held by the BBC unless specifically stated. The material is for general information only and does not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Links to external sites are for information only and do not constitute endorsement. Always obtain independent, professional advice for your own particular situation. </italic>