If you change your mind after signing the documentation for a PPI policy,
you have a legal right to cancel it and have any premiums refunded
within 14 or 30 days of taking it out, depending
on the terms of the policy.
However, if your PPI policy was taken out
some time ago, you may have to pay a penalty
to cancel it and your premiums are very
unlikely to be refunded – unless you feel
you were mis-sold the cover.
I think I was mis-sold PPI, is there anything I can do about it?
If you can't make the payments on a loan,
credit card, mortgage or other finance agreement because an
accident or illness that means you can't work, or
you are made redundant, PPI is supposed to step in and
cover the payments for a set period of time.
However, as explained above, there are
instances in which the insurance will not pay out.
If these exclusions were not explained when the PPI policy
was sold to you, or you were encouraged to take out the cover
even though you would not be eligible to make a claim, you may
have been mis-sold.
Lenders and other financial institutions have a responsibility
to explain the terms and conditions of insurance when making
a sale. Failure to do this is known as mis-selling
Lenders and other financial institutions have a responsibility
to explain the terms and conditions of insurance when making a sale.
Failure to do this is known as mis-selling.
If you think you have been mis-sold PPI cover, contact the company
that sold you the policy and ask for the cost of the insurance,
plus any interest, to be refunded. If the provider fails to reply in
eight weeks, or you are not satisfied with the reply, you can take
your complaint to the Financial Ombudsman Service.
