Are the PPI Figures Stacking Up?
Payment Protection Insurance – or PPI – is an infamous product. Scottish customers who have received their PPI compensation cheques after asking for their premiums back (plus interest and fees) are rubbing their hands with glee.
Banks and lenders are scratching their heads, wondering when the bill will stop rising. And it seems that even with a PPI compensation deadline of June 2019 on the cards, it may carry on rising.
More money in the pot
The announcement that many of the banks and building societies have set aside more money to pay out on PPI compensation claims, have left many Scottish PPI customers wondering how much they could be entitled to claim back.
The actual figure will depend on;
- the amount you borrowed
- the product, e.g. credit card, personal loan, mortgage etc.
- and, how long you have the account for.
For example, a customer claimed back £20,000 and more because they had 2 credit card accounts and a personal loan, all of which had PPI policies attached to them. With fees and interest, the compensation soon stacks up.
And the cost of my PPI was...?
The price paid for PPI varied greatly, anything between 16 and 25% of the amount of outstanding debt (Which? figures 2011).
PPI premiums on credit cards were charged on a monthly basis, whilst other products charged for PPI ‘up front’, as one single payment. This was known as a ‘single premium policy’ and was seen by the lender as another ‘debt’ in which to charge interest (usually at the same interest rate as applied to the main debt or product).
Claiming back PPI AND interest
Reclaiming PPI is not just about getting back the premiums you have paid. It is also about getting back the interest you have paid, along with any fees. On credit cards this can be significant but look at the following calculation:
The cost of PPI on an average credit card in the UK charging 19.32% on an average balance of £5,000 per month would cost an extra £3,219.88 in premiums and interest.
Of course, the amount you could claim back will depend on a variety of factors but it is worth looking at your loans, credit cards and mortgages that you have had recently. If you see anything that looks like a PPI policy, then you need to make a claim.
And we can help you. Call today for a no obligation chat with a member of our friendly team!