PPI – The Most Frequently Asked Questions Part 3/8
In part three of this series of blog posts we’re going to look at what you could be owed. You may be surprised at what amount of money you could claim back from being mis-sold PPI.
How much will I get back?
The average industry PPI payout currently stands around the £2500-£2750 mark. The amount that you could be entitled will depend on a number of factors, including how much you borrowed, over how long you borrowed the money, and at what interest rate. How long ago you borrowed the money is also a factor.
The simple fact is that there is no way of accurately predicting what compensation payment you are likely to get, as it’s the bank themselves who hold the exact figures.
However, our experience shows that anywhere between 10-30% of your monthly payments could have been made towards a PPI policy.
Getting a rough estimate…
As mentioned above, there is no exact calculator out there that will give you an accurate figure as to the award you could receive.
A PPI compensation offer is broken down into three entities…
Part One of your offer is simple, it’s how much you’ve actually paid towards the PPI policy. If you have paperwork it could well tell you how much per month you pay towards the policy. If it does then simple multiply this figure by the number of months you paid the loan or mortgage. If you don’t have any paperwork, and let’s face it, a large number of us won’t, then it’s estimated that between 10-30% of your monthly payments may have gone towards a PPI policy.
Part Two of the award is much more difficult to work out. This is based on the fact that you were paying interest on a false balance, because the balance would be lower had the PPI not been on there. For this you would need the APR percentage, and a full statement of account.
Part Three of the award is what is generally called the compensatory interest. This is awarded because you have been deprived the opportunity to invest or do as you see fit, with the money that your lender took away from you by charging you for PPI. For this part of the award, you need to know the annual breakdown’s for the first two parts of the award.
So, if you receive a text or a call from a company claiming to know what you’re owed please please please ignore it as it’s clearly a scam.
It is only the lender themselves who can provide the actual breakdown. We can guide you by saying if you take 10-30% of your monthly payment and multiply this by the number of months you paid the loan / mortgage, and then add around 10% onto that figure it should give you a rough estimate.
This just about concludes part three, stay tuned for part four coming very soon. If you missed the first two parts, click on the buttons below to catch up on the ones that you missed.