When the payment protection insurance (PPI) mis-selling saga
started, The City estimated that it would cost a few million pounds
to compensate customers.
Unfortunately for the banks, lenders and financial companies,
customers were not so easy to appease. When the true extent of the
PPI mis-selling scandal became more obvious, customers started to
claim compensation in their drives.
And customers were not settling for token gestures, either.
What is included in PPI compensation?
PPI compensation can be worth thousands of pounds to one
customer alone which means that, across the board, the PPI
compensation bill for the banks is no longer millions, but
billions.
In any PPI compensation payment, there will be:
- All the premiums a customer has paid over the time that they
were sold and paying for the policy
- Interest at around 8%
- Costs and fees that may have been charged to the account as a
result of PPI being added to it
- And since the Plevin case, commission is to be compensated too
if this was more than 50% of the cost of the loan and the customer
was not made aware. In fact, you can claim this even if the PPI
policy was not mis-sold to you.
How much are you due?
PPI compensation payments vary from one customer to another, and
from one policy to another. Even though on the face of it, two
claims may look and sound the same, the amount of compensation
awarded can vary significantly.
There are many reasons why this is the case;
- How many PPI policies do you have?PPI was mis-sold on all kinds
of credit products, from credit cards to personal loans, to store
accounts and more. In some cases, it was also sold as part of
mortgages too. The more accounts you have on which PPI was mis-sold
to you, the more compensation you will be due.
- How long have you had the PPI policy or policies?Again, the
longer you have been paying for the policy, the more money you are
due back. Some people may have had their PPI policies on loans for
years, culminating in a bigger compensation payout.
- What kind of accounts was PPI added to?Credit card PPI were
notoriously expensive as the monthly PPI premium was often
calculated on a % basis of the amount outstanding on your account
each month. The more you are owed, the bigger the PPI premium.
Calculating the amount due back is not complex, especially when you
use a reputable claim management firm such as PPI Scotland to make
your claim.
How big will the final PPI compensation bill be across all
banks?
Estimates vary but many experts believe that by the time the
proposed deadline of June 2019 arrives, banks and lenders will have
paid out £37 billion in compensation.
Have you claimed your slice of PPI compensation yet?