Do you know how much PPI compensation could be due to you?
In all the information that is around concerning payment protection insurance (PPI), there is not much on how much compensation people could actually be claiming back.
In this article, we look at what is taken into account, the ‘official’ process of what compensating someone actually is and where the average payment figure comes from.
£2,750 – is this the magic figure?
When the PPI mis-selling scandal broke into mainstream news, there were all manner of experts and people who professed to knowing the depth and scale of the problem was.
The truth is, the scale of the problem did not become apparent for some time. When it did, it was shocking.
In essence the figure of the average compensation for mis-sold PPI of £2,750 is obtained when you divide the value of the policies sold by the number of customers who bought a policy. Thus, this gave a figure of £2,750.
However, in many cases the actual compensating people received was far less and in other cases, far more.
What factors influence the compensation amount paid?
There are many influencing factors including:
- The length of time you have been paying premiums on a PPI policy – the longer you have had the policy, the more you will have paid, the more you will be entitled back.
- The number of PPI policies you have – PPI was applied to credit cards, bank loans, in some cases mortgages and so on and thus, it may be possible you were paying into more than one policy at a time. Again, this will increase the compensation you could receive.
- The level of premium varies too – some policies were paid for in one lump sum, others with a premium every month. In some cases, the premium was calculated as a percentage of the amount left owing. This was common for credit card accounts thus your PPI compensation could be significant.
- Fees and costs – in some cases, customers were also charged arrangement fees or faced costs when their account was in arrears, sometimes as a direct result of having PPI added to them. These should also be reimbursed.
What’s the official line on compensation payments?
There is a phrase that is sued when someone is receiving compensation as a result of a financial product being mis-sold to them. The same is true when it comes to PPI compensation; it says that customers should be put back to the financial position they would have been in had the policy or product not been sold to them.
In other words, you should be no worse off!
Do you have a claim for PPI compensation? Why not find out today by calling Payment Protection Scotland?