20 November 2017
PPI compensation is paid to customers who were mis-sold the product. It's been a bumpy ride and just when you think the road to PPI compensation is smooth, another pot hole comes along.
As well as claiming back premiums you paid, there are other parts to a successful PPI compensation claim: charges and commission.
It seems that there is another gaping hole in the PPI compensation being paid to customers and, the banks and lenders could find that it comes back to haunt them.
Customers found that there were times PPI premiums pushed their account over its set limit. As a result, costs and fees were added. The regulatory authorities have decided this isn't fair and that every customer who had fees or costs added to their account should get them back too.
A court case from 2014 has also impacted on how much compensation people can get back. If more than 50% of the cost of the policy was commission and were not told, you can claim this amount back too, even if your claim for PPI premiums is turned down.
At first, banks weren't too keen on giving money back to customers and made them 'offers', as opposed to calculating how much they were actually owed.
But they were told to compensate customers fully.
They then tried to leave out costs and charges that were racked up on some accounts as a result of PPI being added to it.
When this was discovered, banks and lenders were told to compensation customers fully.
And then along came commissions payments and how the average commission payment for as high as 67% of the cost of the loan.
After a successful court case, the banks and lenders have been told to ensure this is included fully in compensation payments too.
We want everyone to be aware of what should be included in their final compensation payment. When you know what to look for, you will know what to expect.
And with the PPI deadline August 2019 being announced, and the FCA's advertising campaign alongside it, there will be increased pressure on banks with a higher volume of cases.
There is another way and that is to work with Scottish PPI Claims. By working with a professional claim management company such as ourselves, we can ensure that all the compensation that you are eligible for will be in the final figure… because we will fight for every single penny that you ARE entitled to.