Original Artice From 2014 – Updated in 2017 and 2019 to take account of legislation changes.
The issue of mis-sold payment protection insurance (PPI) was very widespread in the UK and it looks like the banks also tried to make easy profits from it here in Ireland.
Note: The UK Financial Conduct Authority set a deadline for PPI refund claims – which is August 29th 2019. This deadline does not affect any such claims in the Republic of Ireland.
Background
It came to light around 2011 that several financial institutions in Ireland (just like in the UK) had probably been selling PPI to people who had no need for it or could not benefit from it. It also looks like that PPI was added on in some cases without customers even being asked about it.
In 2015 there were also problems with Card Protection Policies
In 2013, several companies were forced to review all their Irish PPI sales since July 2007 at the request of the Central Bank. See Here https://www.moneyguideireland.com/payment-protection-insurance-investigation-the-latest.html
The July 2007 cut off date was used because that is when the Consumer Protection Code came into force. It does not mean that customers cannot claim refunds prior to July 2007. (But it will be more difficult).
The review of PPI in Ireland was completed in early 2014 and all customers that were sold a PPI policy by one of the banks in the review should have received a letter about the policy.
Details of the results of the PPI Review Here
Did You have a PPI Policy ?
If you took out a loan, a mortgage or got a credit card or an overdraft you were probably offered or sold an insurance policy to cover some or all of the repayments if you lost your job or got sick.
This type of insurance is known as Payment Protection Insurance or PPI.
Some people might not even realise they had a PPI policy.
You can find out by asking your mortgage provider, loan provider or credit card or store card provider if you have PPI (or had one in the past )
Have you been mis-sold Payment Protection Insurance ?
You may have been mis-sold PPI if one or more of the following applied to you…
- Was the fact that PPI was optional made clear to you? Were you told that you had to take out PPI at the same time as the loan?
- Did the sales adviser tell you about any significant exclusions under the policy – for example, the exclusion that says you won’t be covered for any pre-existing medical condition?
- If you had to pay for the PPI as a single payment, did the adviser make it clear that the insurance cost would be added to the loan and you would be paying interest on it?
- Were you unemployed or self-employed at the time of the sale?
- Were you working 16 hours a week or less when you were sold the PPI?
- Were you sold PPI when you were on contract work?
- Were you not asked if you had any other insurance which would cover the loan?
- Were you led to believe that your chances of securing the loan were better if you purchased PPI?
- Were details of your medical history not asked for?
- Did you feel pressured into purchasing the PPI?
- Were the terms and conditions of the fine print not properly explained to you?
Getting a PPI Refund
1) If you took out a PPI policy in Ireland since July 2007 you should have been contacted in 2014 by the bank that sold it to you.
If the sale did not comply with the consumer protection code – you should have been offered a full refund of premium plus interest. (Latest info on Review Progress Here)
2) If you were not offered a refund of your PPI – but you believe you were missold it – you can still make a complaint to the bank. Write to the bank or credit card company that sold you the PPI. Tell them in writing why you think it was mis-sold to you – listing the reason(s) (see above) and ask them for a refund of the premiums.
If the bank or lender refuses to give you a full refund you can then send a complaint to the Financial Services and pensions Ombudsman. (FSPO)
Update: August 2017.
One big problem here in Ireland was that prior to August 2017 – if you complained more than 6 years after the PPI start date – the complaint could not be dealt with by the ombudsman. More about the 6 year rule here
This has now changed – and now you can make a complaint to the Ombudsman on a policy more than 6 years old if you became aware of a problem with it in the past 3 years. So – if you were told in 2002 that PPI was compulsory – but did not find out until 2014 that it wasn’t – then you can now make a complaint.
More about this Change to the 6 Year Limit here
You can download Ombudsman complaint form HERE
FSPO Contact details: Phone: +353 1 567 7000
Email: info@fspo.ie
The Small Claims Court may also be an option – we know of at least one successful case taken against PTSB for misselling of PPI. It only costs €25 to go to the small claims court – but there is a limit of €2000 per claim.
Some people think that the Statute of Limitations puts a 6 year limit on pursuing refunds – but that might not be the case.
The law states that in the case of fraud or mistake – “the period of limitation shall not begin to run until the plaintiff has discovered the fraud (or mistake) or could with reasonable diligence have discovered it.” ….
Average refunds of mis-sold PPI premiums were about €3250 in the UK – so it’s worth doing. If you have had very large loans or credit card balances – the PPI payments could be thousands of Euro.
In the UK – consumers have already claimed back over £24 billion – (late 2016) and there are thousands of more refund claims in the pipeline. See https://www.moneyguideireland.com/payment-protection-insurance-refunds.html
Hi ,i was sold PPI on a car loan , roughly 4 years ago , i work as a Day Rater on a ship ,so i was told i would need it ,a couple of years ago i taught it was a waste of money ,but was told by the PTSB whom i had the loan out with it it would cost over a thousand euros to buy the insurance ,i never wanted it in the first place but i was told i had to have it,
kind regards Brendan
Have you tried writing to PTSB to say you were forced to accept PPI and ask for a refund. Are you still paying the PPI ?
I had a ryanair mbna credit card that came with ppi on it I canceled it a few years later in 2008 – can I still claim a refund?
Mark – there is a 6 year limit on claims in Ireland – so you should be able to claim a refund if you think it was missold to you.
I re mortgaged over 2 years ago and took out PPI ins.I was working full time and my wife was on 3 day contract as she was just back to work after hernia operation.
MArtin – do you think it was mis-sold to you ?
I don’t know, the information I gave them included my wife’s medical info, her 3 day week contract, but they didn’t say if these would exclude us from any payment if either of us got sick or lost our job’s.
Martin – just follow the advice in the article. First write to the lender ask them for a copy of any documentation showing your consent to the PPI, a copy of the policy and a statement of the total amount you have paid in premiums.
I have been paying ppi on a credit card from Ulster Bank for the last 10 years .i don’t understand why a 6 year limit has been set by the Financial Ombudsman. I was asked no questions about my health . I ticked a box on a pre-approved card form I received in the post . It seemed like a good idea to pay ppi until I heard a discussion on the radio where a man said he had been refused payment when he claimed on his ppi policy because of a pre-existing medical condition. I have been trying without success to get the details of my policy from them for weeks now . After many phone calls i was told to write in to them (Ulster Bank), including my credit card details . I have done that and I am still awaiting a reply . I found it astonishing that no one could deal with a simple query over the phone as you have to answer security questions when you ring to confirm your identity and it seems ridiculous to ask you send sensitive information through the post . Totally frustrated and disappointed at this stage ..
I am currently querying PPI with AIB and MBNA. I specifically said no to PPI as I had thought at the time my job insurance covered. Both were charging me on credit cards.
Reading the above, it seems that I am outside the 6 year time limit which I think is very unfair. My credit cards were approved in 1999 and 2000 and I was paying PPI on them for 7 years. I don’t see why the banks should get to keep the money when records clearly show I was paying for something I said no to.
It was only when reviewing an old statement that I realised I was being charged.
Is there no chance I will get a refund given the timescale or is this just an arbitrary limit set by the Ombudsman? Its not the money but the principle. MBNA were very pushy about PPI but I always saw it as a scam. They should be made to refund.
I am in dispute with MBNA over PPI I did not take out, it was put on my card in august 2006 and I notice in June this year, I immediately complained to MBNA and they strung out their investiagations till the 6 year limit came and went, I knew nothing about a 6 year limit and complained to FSO, they say they can do nothing! MBNA have stolen from me, called me a liar, slyly ran down the clock on my claim and are going to get away with it, I am so angry I can’t even put it into words!
THis 6 year limit is just not fair. It should be a 6 year limit AFTER you discover the problem (fraud?). Many people will have been duped into taking it out – so how can a 6 year limit apply. If the Ombudsman doesn’t change the rules – the only way is to go to court – but that could be costly if you lose. Good Luck. Try your local TD – see if that does any good – it might get raised in the Dail and start the ball rolling ??
I had an MBNA credit card and a BOI credit card. I had a pre-exising condition, I didn’t know my payments wouldn’t be covered if I couldn’t work for the same illness. I lost my job and I claimed from MBNA and BOI and all my claims were refused. I had with BOI. PPI was a complete waste of money for me. I will be chasing them down for a refund. I don’t have the paperwork though, guess I will just have to write to the institutions. I was not cautioned about pre=existing conditions when I ticked the boxes and signed off.
Hi,
When we bought our house in 2002 we took out PPI. At the time I was an employee. During 2004 I commenced self-employment and continued to pay the PPI (with AIB)In 2006 we remortaged with AIB and continued the PPI.
As a self-employed person should I have PPI. My wife is an employee.
AIB say that “Self Employed customers are fully eligible for PPI. If a customer is self employed, they are entitled to claim for involuntary unemployment/business failure, subject to providing evidence at claim stage that their company / business has totally ceased to trade. These customers are also covered for the life, critical illness and accident/sickness elements of cover offered by payment protection.”
I Have a Visa card for year. I have being paying PPI but I nexer signed any forms to permit them to charge me this
Marise
I had a credit card with MBNA back in 08 and was paying PPI, I transferred it to Bank Of Ireland and was paying PPI with them until I found out in 2010 after I lost my job that i wasnt able to claim as my job was contracted part-time work. Bank Of Ireland have written to me but would I be able to claim off MBNA as I have no details of my account now.
Karen First you should Contact MBNA Customer Services
Tel 0818 409 511
Or By post: MBNA Europe Bank Limited
PO Box 25
Carrick on Shannon
Co Leitrim
Tell them what happened and ask them to find your account details and confirm the PpI you paid. Tell them that you are making a complaint about being missold PPI
.
MBNA promise to acknowledge complaints within 5 working days and endeavour to resolve your complaint within 28 days.
If you don’t get a staisfactory respone – you can contact the Financial Ombudsman’s Bureau:
Financial Ombudsman’s Bureau
3rd Floor
Lincoln House
Lincoln Place
Dublin 2
Lo-call 1890 882 090
Tel: 01 662 0899
Fax: 01 662 0890
Email: enquiries@financialombudsman.ie
When we took out our mortagge in 2002 we were obliged to buy a life insurance policy – the standard form where the mortgage is covered if either myself or my husband die prior to the mortgage being paid off. Is the fact that we didn’t choose to buy this insurance but would not have beeen allowed the mortgage without it a basis for a mis selling claim?
I think that type of policy is always pushed as mandatory – when in reality it might not be. Have you got the original mortgage documentation – does it state that life insurance was mandatory?
If it was sold to you and you were told it was mandatory – but it wasn’t – then you have a case for misselling. I don’t think thatthe fact they made it mandatory is misselling. Try contacting the lender and make a formal complaint about it being missold to you.
Are you still paying the policy ? To save further expense why not cancel it?
Hi,
I have an AIB credit card and purchased PPI at the same time since 2006 as I was led to believe it was required. I recalled that I was never asked if I was on a contract work. I explained that I worked as a NCHD doctor in HSE which require change of hospital every 6 months to a year. Hence, my contract are either 6 monthly or yearly basis. I believe the salesperson did enquired the amount of hours worked per week. Also, I was never asked if I had any medical condition -familial hypertension. Am I entitled to refund?
Hello I live in Alicant
Spain I discovered by accident this summer about the missellingof PPI Iwas missold PPI in 2002 I have contaqcted the Bank and Finincal Ombudsman who have both refused my claim as they say I am over the 6 years. Where can I go for help as I dont live in Ireland
Thank You
Hi i took out a loan of 6,000 euro in 2007 , i myself had ppi on the loan and so did my brother who was a guarantor on the loan. They never explained the exclusions to us about the insurance and also never asked about our medical history. we were lead to believe it was a good idea to take it out as it would cover us in case of death, illness or loss of employment. I myself was on a year to year work contract. Would i be entitled to a refund also would my brother be entitled to one he also took out insurance on the loan.
Hi I am just wondering does ppi apply to credit union loans.
I had to take out a €10,000 after a bad car crash around 5 years ago I’d say, I was a student with no full time employment.
I was never told about ppi or any other form insurence.
I am just wondering if it wod apply??
Did you get PPI?
I am not 100% sure, I am trying to find in on my agreement.
My loan commenced on 7/aug/07
If you weren’t sold PPI then you won’t be able to look for a refund.
If in doubt – ask the credit union to confirm if you had it or not.
It says RPI
Martina says:
Your comment is awaiting moderation.
February 25, 2013 at 10:22
Hi
I sold my house in 2004 and bought a property with my partner. We used same mortgage provider and life assurance company that I had with my previous mortgage. When given the updated costs for life assurance I explained that as we both worked full time and our employers had death and critical illness cover did we still need the options they had given and I was told that I needed to have this in place with their company. Should I be contacting my mortgage provider or the Life Assurance provider to query a claim?
Kind regards
Martina
Reply
It was the mortgage provider that sold you the PPI policy – so it is them you need to contact first.
Hi Money Expert,
Relating to the credit card company MBNA. I was originally employed when I took out 2 c.cards with them. I have since been self employed and I never notified them of the change in employment status.
I’ve been maintaining PPI payments to date as I was not aware that self employed could not avail of the insurance.
Since the company has changed hands to Avant, I’ve since put a stop on these payments.
How should I proceed.
Regards
It may not be the case that you are not covered while self employed – but sometimes it can be harder to proove you are out of work when self employed.
You should probably check the terms and conditions. They will probably say that the onus is on you to inform them of any change of circumstances. There is a possibility that they may refund the premiums that you have paid since you became self employed – if you ask.. ?
Thank you for your input.
I will check TnC’s, ‘ask’ and will relay findings for others who may have the same query.
Regards
i have 4 loans dating back to 2004 and i am curious if i would be entitiled to a p.p.i refund.the loans range from five thousand euro up to sixteen thousand euro and the last loan was taken out on may 2006,would i be wasting my time and energy pursuing this????
Gary – the first question is – were you missold PPI on those loans?
Hi, i beleive i was missold PPI on my mortgage 4 years ago, we thought it was life assurance that was coming out every month as thats what we agreed to , turns out the bank never set up our life assurance which is a mistake on theyre side even though their defence is i didnt forward on my medical report which is a lie! we have been getting charged PPI every month instead,when we submitted a complaint about this they came back saying that was set up because we did not sign a form saying we DIDNT want it, therefor it automatically got set up for us!! Is this right or do we have a chance of claiming this back?
Tracy – it sounds like you have grounds for claiming a refund. Get in touch with the Financial Services Ombudsman. By theway – did you get a letter from your mortgage provider telling you that your PPi policy was being reviewed?. Are you sure it is payment protection insurance and not insurance to cover the mortgage if you die (Mortgage Protection Insurance)?
Hi – I took out PPI in dec 2005 and was paying up until month when i cancelled it, as far as I remember nothing was really explained to me at the time except to tick the box. Should I bother pursuing it since its quite a while ago?
Hi,
I took out a mortgage in 2004 and was sold PPI despite also having 2 life assurance policies (one from a previous mortgage which was closed)that I was also encouraged to maintain. Recently I reviewed my portfolio with the bank and the advised me that there was absolutly no point in me having PPI as between my employment and the policies I was more than adequatly covered. I have cancelled this now but how should I go back and make a claim for this myself. I have also been contacted by a legal claims firm who will do it on my behalf, obviously for a %fee. Would there be a good chance of success for me to claim myself or should I use a legal claims firm though the fee is very high.
I took out loans from bank of Ireland 07 08 top up loans. I was working full time at the time. The thing is i finished repaying up the loan early b4 it was due to be finished. Any advice? Thanks
Did you have PPI on the loans? Do you think PPI was sold to you incorrectly?
Hi there,
I was unaware that I had PPI and I had to leave my job due to my health, when I rang the bank I was told I had to pay the loan back in full and was constantly rang/sent letters reminding me I had to pay. I have now paid the loan back earlier this year.
Can I claim Mis-sold PPI?
Thanks
Why did the PPI policy not pay anything for you?
Hi,
I am just back in Ireland and have found documentary proof of the payments made by me to MBNA between 2008 – 2009 where I paid PPI.
I distinctly remember being told that in order to get the loan, €25k, they top loaded both the PPI and the interest which brought the whole loan package up to €36k! I queried this with MBNA at the time but only over the phone so nothing is in writing to confirm this. As I was under major financial pressure at the time I agreed.
Do I have a case? I dont want to initiate a claim unless I have a good chance of success.
Cheers.
I re- mortgaged my home in 2004 32,000euros EBS building society
I was told because I was on invalidity benefit, I had to take out PPI
I own my home out right at the time and I thought that would cover any payments
Do I have a case,
be grateful for advice as I still paying and on benifits
thanking you
If you were not in work when PPI was sold to you – then it appears it was a useless policy and you should be entitled to claim a refund. PPI is to help cover mortgage payments when someone becomes ill etc and has to stop work. You were already out of work.
Check the policy to see exactly what it covers (if you have a copy) and that it is a Payment Protection Insurance and not soemthing else (maybe life insurance)
If it is PPI – you should make a complaint in writing to your lender telling them you believe you were missold the PPI because you were told it was compulsory and you now realise you could never claim on it. Ask for a full refund. If this is not accepted taake it to the ombudsman as outlined in the article above.