If you were mis-sold a PPI policy and want to reclaim your money, you need to be aware of the following so that you will be able to calculate how much refund you will be getting. While there are a lot of online calculators that exist to do the computing for you, it doesn’t hurt to know the principles behind the values.
The money that you get should you claim for repayment due to mis-sold PPI actually is divided into two: the premiums that you actually paid for, and the interest you earned from these premiums. At times, there might also be the added element of compensation for distress and inconvenience because of what you went through, but in general, the two factors are what constitute a PPI refund. These determine just how much money you can get when you make your claim. Hence, the value is not similar to all people, but highly dependent on the circumstances behind each complaint. Furthermore, to be able to make a correct computation, the claim companies need to consider the following: when the most recent payment was made, and what the PPI policy in force was at the time of the loan.
Calculating the premiums is fairly easy. All you would need to do is compute for the amount of money you spent on your PPI policy. The interest rate is trickier, because its value is dependent on different factors: how much the premiums were, the number of months the insurance company handled the premiums, and the interest rate set by the regulatory board. This monthly interest rate will be multiplied to each PPI premium, which will then be multiplied again, this time to the sum of the number of months you have been paying your premiums. There may be a difference in the value when credit cards are involved, but this formula should already give you a slight idea on how much you will be getting should your claim be successful.
If you’re unsure about how to calculate a PPI refund and wish to reclaim your PPI, get in contact with us today by completing our quick test or contact us on 0845 475 0505.
