Can you change PPI provider?

It is possible - but not always easy...

It is certainly worth shopping around to see if you can find cheaper PPI policies. Some stand alone PPI providers are drastically cheaper that banks who sell PPI with the borrowings.

There has been such controversy in the PPI market over the last few years that wanting to change PPI provider has become increasingly common. PPI has been widely mis-sold, with this mis-selling being carried out by not only the banks or providers but also by third party brokers.

If you want to change PPI provider it should be OK. Please note that some lenders allow you to cancel the PPI while keeping the loan, credit card or store card. Several high-profile companies have now been fined by the Financial Services Authority for the widespread mis-selling of Payment Protection Insurance. This means it's possible to switch PPI to a standalone provider without changing the loan because the lenders do not want any complaints.

Many members of the public have become wary of the PPI sector because they have read the horror stories about missold PPI policies. Many members of the public have made enquires to change PPI provider. Some lenders have been fine but the more common scenario is lenders are not making the process of PPI policy change simple.

Tips on the process to change PPI provider.

1. Be prepared for long delays about when asking for PPI comparisons, quotes and providers.
2. Be prepared to deal with customer service advisors who fail to understand the issues about PPI.
3. Understand that many banks and lenders don’t know how to deal with PPI cancellations. You therefore get passed around from pillar to post.
4. Understand that many banks and lenders don’t know how to separate PPI amount from the borrowed amount. They therefore take weeks to come back to you.
5. Be patient with the lenders as  the PPI providers are currently making the move towards a more flexible policies.
6. Check the terms and conditions of the PPI policy. Try to understand every bit of the agreement.
7. Don’t attempt to change PPI provider if the PPI terms and conditions state that the policy id void if there is the likelihood of redundancy or pre-existing conditions at the time they are taken out.
8. Please do not attempt to change PPI provider if the amount of rebate is not pro rata but instead will depend on the length of the amount borrowed and the period of time that has passed when PPI policy cancellation request was made.

Click here to complete your PPI Claim Form