A specialist claim firm can prove to have many advantages that your own research would not necessarily be able to achieve. For example, it will show a clear understanding of the way banks react, claims specialists will be able to tactically pick up on the deception and expression each bank and their complaints handling department [...]Read more
You may have been mis-sold PPI if you can answer yes to any of the following questions: – You didn’t ask for PPI but it was added to the policy regardless – You were told that adding PPI was compulsory or that you had a better chance of acceptance – You were not aware payment [...]Read more
PPI (Payment Protection Insurance) is insurance that covers your repayments if you cannot meet them for any reason, for instance accident, injury or being made redundant from your job. Payment Protection Insurance may have been sold to you on any credit product including loans, credit cards, store cards, mortgages, car finance etc. It was mis-sold [...]Read more
Calculating the potential refund that you will receive if you make a payment protection insurance claim is easy when you use a PPI refund calculator. You simply need to enter in some information and the output will be what you should expect to receive. To make things simple and partly catering towards those who do not have any specific details on their payment protection insurance policy the information that is requested is pretty basic such as the value of the loan and the number of months the loan was over. Of course all of the potential outputs are based on the industry average cost for payment protection insurance and is just an estimate. The refund you do receive may be worth more or less than predicted by the PPI refund calculator if you had a higher or lower cost payment protection insurance policy than what is generally seen. You should therefore not make any financial decisions based on the outcome of such refund calculators and use them as a guide only.
A PPI refund is a complete refund of any money which you paid towards a PPI policy and this includes the interest you will have been made to pay if you were paying for your policy on a monthly basis which was the case in most circumstances. On top of this refund you will be given a statutory compensation which is worth 8% of the money which you paid out during your policy. Knowing just what parts make up a PPI refund makes it much easier for those looking to make an accurate attempt at working out how much their refund will actually be worth and more suited to those who are planning ahead and making decisions based on such information.
If you want a more accurate look at what your refund might be if you made a PPI claim you need more information available to you such as the actual monthly payment which went towards the payment protection insurance or even better the total cost of the payment protection policy which you were charged. This can be found by looking through your old documentation and finance agreements. If you know the total amount which was spent on the payment protection insurance policy you simply need to add an 8% figure on top of this and this is the compensation part of the payment that you will receive. If you know the monthly figure which you paid multiply this by however many months the policy was active for and you will get the total figure and again add 8% for the compensation on top.
For those that aren’t sure on how much the policy payments were a less accurate estimation can be made, PPI policies cost 10-30% of the value of the loan. Take your total loan amount and work out what 10% of this is, add 3-5% for the likely amount of interest you will have been paying on the premiums each month and then add 8% for the compensation You can now repeat this with 35% of the loan amount and the two figures will give you an approximate range of the pay out that you will be likely to receive.
If you are using a claims management service to make the PPI claim for you then you need to be aware of all of the fees that are involved in the process. Many and the most effective tend to operate on a no win no fee so if you have a complicated case and end up losing you will not be left out of pocket at all. No win no fee also generally means that there are no upfront fees to pay before the claim gets started and this is an ideal arrangement for most people. The fees occur upon the completion of a successful PPI claim and the market rate for these is currently 20% of the pay out. It is imperative that you research these before submitting your claim and ensure that the fee you are under the impression that you will be paying is the complete fee with no added extras once you submit your claim you only have a cooling off period in which to change your mind and then not proceed with making the claim. Beyond this cooling off period a fee will be charged. Many consumers make the mistake in thinking that VAT (value added tax at 20%) is included in the fee and then the claims management service adds this on top after the claim is made which results in a much lower pay out than the consumer was expecting.