Many of us have a least one credit agreement in place, and if you took one out a while ago you might remember agreeing to PPI or Payment Protection Insurance.

PPI policies were so widely mis-sold that it really is worth checking all your credit agreements to see if you have been making PPI payments, and if you have, trying to reclaim the premiums.

Which credit agreements could have mis-sold you PPI?

You could have been sold PPI on a variety of credit agreements including:

  • Personal loans

  • Credit cards

  • Mortgages

  • Hire purchase agreements

  • Personal contract plans

  • Car loans

If you are not sure whether you are paying for PPI on a credit agreement that you have in place, you will need to check your paperwork, and find out whether you have been charged for PPI premiums.

How can you find PPI on your credit agreement?

You should first check your individual credit agreements for any reference to PPI or accident, sickness and unemployment (ASU) cover as it can also be known. This should be clearly indicated in the key facts document you would have received from your lender.

If you cannot find this, then check your monthly payments. If the lender takes two payments, one larger and one smaller from your account each month, then the chances are you are paying for PPI.

However, part of your monthly loan repayments could relate to your PPI cover without you even realising it. In many cases, the payments are not split out from the interest payments so you have no way of identifying the amount you are paying for PPI and interest separately. As a result, many people will have been paying this for years without realising it.

If you are left in any doubt, contact your lender by phone to find out.

How do you claim PPI back?

Once you establish that you have had PPI, you need to work out how long it has been in place, and how much you have paid for it over the period of time.

The next step is to contact the company that sold you the PPI and ask for a refund. To make the process as easy as possible, we've drawn up some PPI Letter Templates that you can use.

For more information on re-claiming PPI, read our guide; How Do I Reclaim Payment Protection Insurance (PPI) Premiums?