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EXPIRED 29th Aug 2019

Car Finance PPI Claims

car finance ppi claims

What is Car Finance PPI?

Getting a loan to help us buy the things we want has become commonplace especially for big items such as cars.

Most car sales in the UK involve some kind of finance. If you purchased a car in the last few years using any kind of finance from a dealership or other type of car loan, you may have been offered an option to cover your repayments, if you were ever unable to work due to illness or if you lost your job.

The cover, called Payment Protection Insurance (PPI), ensured that you did not face any penalties for missing a loan instalment, by making the payment for you if you met the full criteria set by the insurance company.

When the loan was taken out, you would have been asked a few questions to assess if PPI was suitable for your needs. Sometimes the right questions were not asked, or they didn’t go into enough detail, so the assessment may not have been accurate.

Many people took out PPI policies not knowing that they could have purchased a policy from another provider that may have suited their needs better and possibly at a cheaper rate.

It is important to read the small print in these documents as this is where the qualifying criteria of the cover is set out and the circumstances in which it will pay to cover your loan. As with all insurance policies there will be a set of exclusion clauses, so it is important to be aware of what they are and if any of the exclusions apply to you.



The PPI deadline has now passed and we are no longer accepting any new PPI claims.

Please be assured, if you have already enquired about a PPI Claim with Money Management Team Limited we are processing your enquiry and will update you as your claim progresses. If you need an update in the meantime, please contact us.

You can pursue your own claim direct to the firm to obtain a refund. You can do this for yourself at no cost and then use the Financial Ombudsman Service or Financial Services Compensation Scheme (FSCS) which are both FREE.

£Millions Remain Unclaimed!

Types of loans and vehicles PPI was sold on

The types of finance agreements that PPI was sold with include hire purchase agreements (HP) and personal contract plans (PCP).

These forms of finance are often used to purchase:

  • Boats;
  • Caravans;
  • Cars;
  • Motorbikes;
  • Motorhomes;
  • Vans.

Brokers who sold PPI with Car Finance

A lot of car finance loans were set up by car dealerships and other car garages who act as brokers when arranging finance for their customers. Unbeknown to the customer buying a car, caravan or motorbike etc., PPI was often added to the loan.

Many such brokers who not only sold the vehicle but also provided the finance with the PPI were not regulated by the Financial Services Authority (FSA). The consequence of this was that these types of brokers were not covered by FSA regulations on mediation of insurance.

The situation changed when the FSA's remit was widened to include the regulation of companies who sold PPI and other insurance products, this came into effect on 14 January 2005. Therefore all insurance providers must, after this date, have procedures in place to deal with insurance complaints including PPI.

Which Lenders Sold PPI with Car Finance Loans?

The following list of car finance providers are known to have mis-sold PPI on car finance loans:

  • Bank of Scotland
  • Barclays
  • Black Horse
  • Clydesdale Bank
  • EGG
  • First Direct
  • HSBC
  • Halifax Bank
  • Lloyds Bank
  • Lloyds TSB
  • NatWest
  • PSA Finance UK (covers Peugeot Financial Services and Citroen Financial Services)
  • Royal Bank of Scotland
  • Santander
  • Welcome Finance
  • Yorkshire Bank

This is not an exhaustive list of car loan lenders that included PPI with the finance. If you dealt with a firm not listed above or in the lender pages, please contact us for further assistance.

Car finance PPI Charges & Costs

There are two ways in which car finance PPI is sold and charged for but this depends on which product it was sold with; Single Premium car finance PPI and Monthly Premium car finance PPI.

Single Premium Car Finance PPI - These policies charge an upfront premium that covers the insurance cost. The premium is added to the sum borrowed and interest is then charged on the PPI premium and on the loan. The customer therefore repays not only the monthly loan repayment but also the premium and the interest on it.

What customers may not know about single premium PPI policies is that they don't cover the duration of the loan, it usually only covers a 12-month period. Also, customers who settled their loan early, were not refunded the remainder of the single premium PPI cover that was no longer needed.

Single premium PPI on unsecured personal loans was banned by the FSA in October 2010. The reason for the ban is because the entire cost of the insurance has to be paid upfront, it leads to the borrower having to pay much more in initial repayments than they would otherwise pay.

Monthly Premium Car Finance PPI - these are also known as regular premium PPI that are paid for on a monthly basis.

There are significant differences between this and the single premium PPI:

  • Monthly PPI policies can be cancelled at any time;
  • Single premium PPI can only be cancelled in the first 30 days of the policy starting and be refunded fully;
  • Cancelling a single premium PPI policy after 30 days, you will only get back a proportion of the premium paid.

With the above in mind monthly premium PPI seems to offer better value than single premium PPI on loans.

Ways in Which Car Finance PPI Was Mis-sold

PPI was such a profitable product for banks and financial services providers that customers were being sold it regardless of if PPI was needed, wanted, or suitable. In addition to this many people who had it didn’t know they had it, because it was added to their accounts without the customer’s consent or knowledge.

An investigation by the Citizens Advice Bureau and by the FSA uncovered the wider problem of selling PPI mis-selling. Proper checks had not been carried out to establish if the customer was eligible for PPI in the first place and if they understood if the product was right for them.

Furthermore customers were not given a choice of which type of PPI, if any, to take out. Many customers were sold single premium PPI policies instead of being offered monthly premium loan PPI policies.

There are several ways in which car finance PPI may have been mis-sold to you:

  • You were unaware that you were being sold car finance PPI;
  • You felt under pressure to take out the car finance PPI in order to be approved for the car finance;
  • The lender did not check if any of the exclusions applied that would make it impossible to claim on car finance PPI policy;
  • You were led to believe that the car finance PPI purchase was compulsory and not an optional extra at the point of sale;
  • Your employment already provided you with this type of cover or you had another PPI policy in place;
  • If your age at the time of taking out the car finance PPI was past retirement you would not qualify for the PPI;
  • At the time of taking out the car finance PPI you were self-employed, unemployed or retired;
  • Any pre-existing medical conditions you had were not considered at the time of taking out the car finance PPI;
  • No information was provided to you about your right to cancel the car finance PPI policy.

Don’t Recall Which Car Finance Provider You Used?

Trying to remember the different car finance lenders used can be difficult, but it doesn’t mean you can’t still check for mis-sold PPI or put a claim in.

There are many cases where people cannot remember which providers they have used, mainly because of how long ago it was or the number of lenders they’ve used over time.

Looking for any paperwork relating to past car finance will help to identify lenders and determine if you had PPI or not. If you don’t have any documentation, we may be able to help in trying to identify your past lenders.

How Much Will I Get If My Car Finance PPI Claim Is Upheld?

If your car finance PPI claim is successful, the amount you are compensated by will consider the following:

  • how much PPI you paid per month depending on if it was a single premium PPI policy or a monthly premium PPI policy;
  • the amount of interest added;
  • any charges for missed payments or arrears that could have affected the cost of the PPI.

When the above facts have been assessed and the amount to be refunded has been calculated, an additional sum for statutory interest at 8% should be added. This will make up the total amount payable for mis-sold PPI.

What is Undisclosed High Commission Claims on PPI (Plevin)?

The Financial Conduct Authority (FCA) in August 2017 introduced a new ruling for PPI mis-selling called ‘Plevin’. Under this ruling, anyone who had PPI from a bank or lender attached to an active finance product since 2008 may be owed some money. In the past, in order to reclaim any PPI, you had to have been mis-sold it. The FCA’s new rule says if over 50% of your PPI cost went as commission to the lender, and that wasn’t explained to you, you can claim back the extra above that.

Following the ruling, the FCA set out guidelines that defined high commission as being more than 50% of the cost of the PPI premium and further stated how banks should investigate and correct PPI commission.

The Plevin ruling will not apply to everyone for example if as a result of a previous claim, you’ve already received a PPI refund, you cannot now claim for unfair commission.

If you have already raised a previous complaint for mis-sold PPI which was not upheld, you may be able to claim about the commission charged on your PPI policy. You may be eligible if the any of the following apply:

  • the car finance with the PPI was sold to you on or after 6 April 2007; or
  • the car finance with the PPI was sold to you before 6 April 2007 and was still in effect on or after 6 April 2008.

How Long Do I Have To Make A Car Finance PPI Claim?

The FCA has set a deadline of 29 August 2019 by when all claims for mis-sold PPI need to be submitted.

This means that your mis-sold car finance PPI claim must be submitted before this date. New claims cannot be lodged after this date.

There may also be other time limits to considers, so act now and put in your car finance PPI complaint as soon as possible.

Can I Still Reclaim Car Finance PPI If the Company is No Longer Trading?

If the company who sold you the car finance PPI is no longer trading or has been declared in default you may still be able to claim from the Financial Services Compensation Scheme (FSCS).

Frequently Asked Questions Car Finance PPI Claims

Read our frequently asked PPI claims related questions and answers. In the majority of cases the first step to making a PPI claim is to get a PPI check done with the lender. Unfortunately the PPI deadline set by the FCA has now passed and we are no longer accepting any new PPI claims.

What is PPI?

PPI stands for Payment Protection Insurance. It is a financial product designed to cover repayments on loans, mortgages and credit cards which you may not be able to meet if you find yourself out of work due to illness, redundancy or other reason.

Having PPI cover would mean that if you fell ill, became unemployed, or found yourself in a situation which meant you were not earning money, your repayments would be covered.
PPI also went by many other names, such as: ASU insurance (Accident, Sickness and Unemployment), Life & ASU insurance (Life & Accident, Sickness and Unemployment cover), PLP (Personal Loan Protection), CCRP (Credit Card Repayment Protection) and MPPI (Mortgage Payment Protection Insurance).
These insurance policies were often sold alongside loans, mortgages and credit cards

How was PPI Missold ?

Many sales staff at banks and other financial companies were under heavy pressure to meet certain targets each day in the 1990s. Encouraged to sell PPI wherever possible – due to its strong profitability – many of them sold PPI incorrectly, going against the industry regulations in order to reach their targets.

PPI was mis-sold in many different ways, with some of the most common being:

  1. The bank telling you that it was compulsory.
    Customers were sometimes told by the banks and lenders that PPI cover was necessary in order to receive the loan they were applying for. Sellers would either not mention it was an optional extra, or imply that those in charge of deciding whether you would receive your loan would be more likely to accept your application if you took out PPI cover.

  2. You received it without asking for it, or without knowing you were having it. You might not have discussed PPI properly with the seller, yet they subtly added it to the loan documents without you asking to have it.

  3. It was sold to you for an expensive price
    If PPI was sold to you at a high price, then you may have barely gained any money if you ever ended up claiming on it, even if you were eligible for the maximum payout. Because the policy would not actually benefit you properly, it can count as being mis-sold.

  4. It was unsuitable for you to have it
    Some people had no need for PPI cover. They were either fully covered anyway by another policy, or their personal situation made it impossible for them to ever claim on it, such as having a pre-existing medical condition, for example. You may have reached retirement age during the policy’s timeframe, for example, making the PPI mis-sold.

How do I know if I’ve had PPI

Your statements or other relevant documents should have PPI listed on them, potentially under other names such as: ASU insurance (Accident, Sickness and Unemployment), Life & ASU insurance (Life & Accident, Sickness and Unemployment cover), PLP (Personal Loan Protection), CCRP (Credit Card Repayment Protection) and MPPI (Mortgage Payment Protection Insurance).

How do I check and spot PPI payments?

For PPI on loans or mortgages, you will probably be able to find signs of PPI payments on your original agreement. For PPI on credit cards, it should show up on your statements. Generally it would have been charged monthly.

Remember to check for the different names PPI was sometimes called on your documents, such as: ASU insurance (Accident, Sickness and Unemployment), Life & ASU insurance (Life & Accident, Sickness and Unemployment cover), PLP (Personal Loan Protection), CCRP (Credit Card Repayment Protection) and MPPI (Mortgage Payment Protection Insurance).

Why should I make a claim?

The Financial Conduct Authority (FCA) – formerly the Financial Services Authority – discovered that PPI had been mis-sold by many banks and lenders across the UK on a major scale.

There were 20 million PPI policies in the UK by mid-2008, with an estimated seven million added to credit agreements annually. Based on this, PPI may have been mis-sold to more than 70 per cent of the UK, with potentially more than 40 per cent of policyholders not even knowing it was attached to their loan, mortgage or credit card.

Considering this, it is reasonably possible that if you took out credit in some form during the last few decades then you may well have been mis-sold PPI on it, or been charged an unfairly high amount of commission on it, and therefore you may be entitled to compensation.

Additionally, many cases which have been rejected by lenders later go on to be overturned by the Financial Ombudsman Service (FOS).

Can I make a PPI claim myself?

While you have every right to deal with your claim yourself, some people may feel like they don’t have the spare time or patience to do this. PPI claims involve completing questionnaires, chasing up banks, and can take various different routes.

Using a claims management company means they can use their knowledge and experience to guide you through the claims process.

How far back can your PPI claim be dated?

PPI is known to have been mis-sold from as far back as 1988 up until 2014 in some cases.

How much could I get back?

If your PPI was mis-sold, the amount of compensation paid out is generally your PPI premiums plus gross interest at 8 percent. If you paid more interest on your loan, mortgage, credit card or other product as a result of having PPI, then you may receive more compensation.

What happens if I’ve missed repayments?

Should you have missed any payments on the loan, credit card or mortgage which you are claiming for, any compensation you receive would be used first to clear any arrears, before the any payment is made to you.

The Financial Ombudsman Service (FOS) offers a free and impartial advice service for consumers, and we recommend that you speak to them or to a specialist debt advisor about your financial situation.

Can I still make a claim even if my PPI policy has expired?

Yes. No matter when the policy expired, provided the PPI was mis-sold, you are entitled to make a claim.

What if I don’t have any paperwork?

Financial companies must keep records of all their customer’s transactions and dealings for the past 6 or more years, so they may still have your records for you. If you paid off your loan more than 6 years ago, there may not be any available records. However, there have been cases in which claims have been made against cases of mis-selling over 20 years ago, often without paperwork.

How long do PPI claims take to process?

Our average timeframe is between 8-16 weeks from the date of the lender’s acknowledgement to a decision being made.

Should your claim be rejected and you then appeal to the Ombudsman, you can expect to wait several months longer. However, many claims that are rejected initially go on to be overturned by the Ombudsman so it is generally worth the wait.

The more details you can recall about your agreement, the more likely it will be that your lender can locate and verify you against their systems. This can help avoid requests for further information which can delay a decision being made.

I am currently in a Debt Management Plan Can I still claim?


Being in a debt management plan (DMP) does not have any effect on your right to make a claim. However, your own situation may differ, depending on your agreement with the debt management company you should be aware of the following:

  1. You may be required to let your debt management company know that you plan to claim, as well as informing them about any subsequent compensation.
  2. If the loan, credit card, mortgage, overdraft or other account you are complaining about was included in the DMP, your lender may automatically deduct some or all of the compensation and pay it to your debt management company.
  3. If it was not included, then it is possible that you might still be required to make a payment to the debt management company.
  4. It is possible that you may not end up with any money left over after paying back your DMP, however you will still have benefited from making the claim because your outstanding debt will have been reduced.

I have an IVA or have been declared bankrupt, can I still claim?

If you are going through or have recently been through an IVA or bankruptcy, you must speak to your insolvency practitioner or debt adviser before making a claim.

What if the finance company no longer exists?

If your PPI policy was taken out after 14th January 2005 your claim can be taken to the Financial Services Compensation Scheme (FSCS). The FSCS is the UK’s compensation fund of last resort. They may pay compensation if a firm is unable, or likely to be unable, to pay claims against it. This usually takes place when the original lender either no longer exists or is bankrupt.

How will this affect my relationship with the lender?

A claim should not affect your relationship with the lender, because it is the lender’s duty as part of the FCAs “Treating Customers Fairly” (TCF) initiative to ensure that all customers are treated fairly.

The FCA are very serious about this being carried out, saying: “TCF remains a vital part of our supervisory approach and as such, it has been fully integrated into our core supervisory work. This will help to safeguard the legacy of the significant effort made by the FCA and by firms on their TCF programmes, in terms of improved outcomes for consumers. Where we find failings, we will use our full range of regulatory powers to take action.”

Other Organisations That Can Offer Help and Advice on Car Finance PPI

There are some regulatory bodies who can offer information and assistance regarding PPI: The Financial Conduct Authority, the Financial Ombudsman Service and the Financial Services Compensation Scheme.

Financial Conduct Authority (FCA)

The FCA are the finance industry regulator, whose role it is to protect consumers. They will provide general information about PPI but cannot offer advice on an individual basis, this includes mis-sold car finance PPI complaints.

You should contact the PPI provider directly, being a regulated company they should have procedures in place to deal with PPI complaints.

Financial Ombudsman Service (FOS)

The FOS deals with complaints and disputes made by customers of UK banks, building societies, insurance companies and other financial services organisations including advisers.

For the FOS to look into your car finance PPI complaint you will need to have contacted the organisation concerned and allowed them to put the matter right. If you’re not happy with the organisation’s response or lack or response, only then can the FOS get involved. However, you will need to contact the FOS within 6 months after receiving the final response from the organisation concerned for them to be able to investigate the matter.

Financial Services Compensation Scheme (FSCS)

The FSCS is there to protect customers in the event of an authorised financial services organisation fails i.e. firms that are authorised by the FCA and the Prudential Regulation Authority.

If the organisation you are dealing with has gone out of business, cannot pay the claims made against it or has been declared in default, the FSCS can make an award of compensation. The award will only be a maximum of 90% of the car finance PPI claim where there has been actual financial loss.