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Scotland Wide PPI Specialists

Are the PPI Figures Stacking Up?

11 February 2019

Payment Protection Insurance (PPI) is an infamous product. Scottish customers who have received their PPI compensation cheques after asking for their premiums back (plus interest, fees and possibly commission too) are rubbing their hands with glee.


Banks and lenders were scratching their heads, wondering when the bill would stop rising. Even with a PPI compensation deadline of August 2019 only months away, we are nowhere near the final cost of mis-selling this insurance product.

More money in the pot

The announcement that many of the banks and building societies have set aside more money to pay out on PPI compensation claims have left many people wondering how much they could be entitled to claim back.

The actual figure will depend on;

  • the amount you borrowed
  • the product, e.g. credit card, personal loan, mortgage etc.
  • and, how long you have the account for
  • and how much commission you pay a broker - if the person arranging PPi received more than 50% in commission and you were not told, you can also claim this money back too.

For example, a customer claimed back £20,000 and more because they had two credit card accounts and a personal loan, all of which had PPI policies attached to them. With fees and interest, the compensation soon stacked up.

And the cost of my PPI was...?

The price paid for PPI varied greatly, anything between 16 and 25% of the amount of outstanding debt (Which? figures 2011).

PPI premiums on credit cards were charged on a monthly basis, whilst other products charged for PPI 'up front', as one single payment. This was known as a 'single premium policy' and was seen by the lender as another 'debt' in which to charge interest (usually at the same interest rate as applied to the main debt or product).

Claiming back PPI AND interest

Reclaiming PPI is not just about getting back the premiums you have paid. It is also about getting back the interest you have paid, along with any fees. On credit cards this can be significant but look at the following calculation:

The cost of PPI on an average credit card in the UK charging 19.32% on an average balance of £5,000 per month would cost an extra £3,219.88 in premiums and interest.

Of course, the amount you could claim back will depend on a variety of factors but it is worth looking at your loans, credit cards and mortgages that you have had recently. If you see anything that looks like a PPI policy, then you need to make a claim.

And we can help you. Contact Scottish PPI Claims for a no obligation chat with a member of our friendly team!