PPI Claims: Don’t forget the interest
When you make a successful claim for mis sold payment protection insurance, you won’t just get the premiums that you paid back. You’ll also receive any interest that you paid on the premiums, and you may be entitled to an additional 8% per year on the combined premiums and interest - and this is where the total can really tot up as Financial Claims Solicitor, Paul Cahill, explains:
“Many people presume that when they make a PPI claim, the best they’ll get back is simply what they paid for the Policy. Others are aware, in addition to this, they’ll also receive 8 per cent interest.
“But few are aware that they’ll also be compensated for any interest – often up to 20 per cent - you paid on the premiums so unless you paid off your balance in full at the end of each month, you can expect to receive a lot more than your original policy if your claim is successful.”
According to the Financial Conduct Authority (FCA) payouts for mis sold payment protection insurance is now totalling close to £23bn. However only about half of this is for PPI policy refunds; the rest is interest paid to compensate borrowers.
Paul Cahill continues:
“The whole PPI mis selling scandal has been incredibly costly for lenders and yet they still don’t seem to have learned their lesson; there are many other examples of financial mis selling having taken place. This is why we now run a full financial review for all our clients to see if any further policies have been mis sold including packaged bank accounts.”
Contact our team to see if you’re entitled to PPI compensation
Content correct at time of publication