Monster PPI Compensation Claims!
Can you imagine claiming back £82,000 in PPI compensation? This is exactly what happened for one Barclaycard customer a few years ago. He said the product ‘just appeared one day’. He didn’t know what it was or what it was for. After 16 months of arguing with Barclaycard, he was awarded compensation. But what lessons can we learn from this feel-good PPI compensation story from 2012?
The customer in question made an initial claim against Barclaycard back in 2010, just as the compensation process was starting. His claim was rejected. He could have left it there. But he didn’t.
He took his case to the Financial Ombudsman Service to question Barclaycard’s decision. This is a free service, but it can take time. After 16 months, the final decision was made, and he received £82,000 in compensation for mis-sold PPI over both his credit cards.
What can we learn from his story?
Credit Cards + How many cards + PPI premiums + Time + Interest = Large PPI compensation claim
The equation is simple now that the facts are known:
The customer had two credit cards.
PPI premiums on credit cards was calculated on a monthly basis as a % of the total amount outstanding. If these credit cards were at their limit more often than not, the PPI premium paid would have been higher than one at the other end of the scale. Some PPI premiums per month could be as high as £60 to £90.
Add to this the length of time that the customer had been paying these inflated monthly PPI premiums on two cards, and you can see why the final compensation amount stood at £82,000.
And finally, the other factor that bumped the amount of PPI compensation this customer was entitled to, was the addition of compound interest, a method of calculating and applying interest to the amount outstanding. This added a significant amount, with interest charged as much as 29% at times.
Added to this equation is the possibility of also claiming back the inflated commission payments that were sometimes made to the person or broker who arranged the PPI policy. This may not apply to all credit cards but it is a common issue for customers claiming PPI on loans, mortgages and other lending product.
What you must do BEFORE August 2019?
You should check ALL your accounts for PPI as it was mis-sold to thousands of customers. But if you are going to claim your money back, you must lodge your claim before the PPI deadline at 11.59am on 29th August 2019.
Payment Protection Scotland can help! With a high success rate and one fixed fee, if you need professional help to claim back your money, we are the company to call.