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PPI reclaim template letter for loans

If you took out a loan and have found out that either the PPI was a condition of the loan at the time or you didn't know that PPI had been added to that loan then you can use this template as a starting point. You will obviously need to amend the details to fit your needs.








.[Your address]

The Complaints Department

[Lending Company address]


Dear Sirs,

Ref – Your PPI policy number

I believe that I have been mis-sold payment protection insurance on my loan and wish to request a full refund of my premiums, plus interest paid during the term of the loan to-date.

I took out the £9999 loan on [date] and also bought a payment protection policy which would cost me an extra £9999 over the life of the loan.

The total amount of my premiums plus interest is £9999.

When I took out the loan, I was told that my application was conditional on me also taking out a PPI policy. The FSA’s advice to consumers is that, while it does not breach FSA guidelines, a borrower should not be refused a loan if they choose not to buy an insurance policy.

You are not allowed to make PPI a condition of taking out a loan unless you include the costs of PPI in the quoted interest rate.

By forcing me to buy this policy in this way you have breached paragraph 8.6 of the Banking Code, to which you are a signatory and obliged to comply with.

Being forced to buy this policy as part of the loan in this way was an unfair and unreasonable obligation as I did not need this insurance and said at the time of taking the loan that I did not want it.

I am requesting a full refund of all my insurance payments, plus interest, which total £ 99999.

If I do not receive a favourable response from you I will pursue this claim through the Financial Ombudsman and what other means are available to me.

Yours faithfully,

[Your signature]

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