Maximum Compensation - Why are some PPI compensation pay-outs so BIG?
12 February 2018
Payment protection insurance (PPI) is now infamous for the
unfair way in which it was sold to millions of customers. The
collective PPI compensation bill across British banks and lenders
now stands at nearly £30 billion, far bigger than anyone
With the PPI deadline of August 2019 in place, you may be
considering making a claim for mis-sold PPI. Spurned on by stories
of life-changing compensation amounts, you may be wondering just
why and how some compensation payments are so BIG.
5 Reasons Why PPI Claims are Worth a Lot of Money
Compensation for mis-sold PPI is calculated so that you, the
customer, are put back to the financial position you would have
been in had you not been sold PPI.
How this is calculated depends on various things but when it
comes to BIG pay outs, there are five reasons why the compensation
settlement was so big.
- The number of accounts - you will find that
the majority of people who have received thousands back in PPI
compensation had several accounts. From personal loans to credit
cards and mortgages, PPI could be lurking on more than one account
- and you could be entitled to compensation across them all.
- Time - many who have received BIG PPI
compensation payments (over £100,000 on one case) won these larger
amounts as they had been paying for PPI for a long, long time. In
fact, some customers had been unwittingly paying for PPI for over
ten years - and it all adds up.
- How PPI premiums were charged - on some loans
the PPI premium was a fixed monthly premium but on others, such as
credit cards, PPI premiums calculated as a % of the amount
outstanding each month. If you did not pay off your credit card
bill each month, this meant you were paying a % of the amount
outstanding. This could add a substantial amount to the account
- Fees and costs - in recent cases, banks,
lenders and financial institutions have not been reimbursing their
customers the full amount of PPI compensation they are entitled to.
This is because fees and costs that were added to many accounts as
a result of them being pushed over their credit limit by the
addition of PPI premiums, have not been reimbursed as part of the
- Unfair commission - banks, lenders and brokers
also charged commission of sales of PPI. If this was more than 50%
of the cost of the policy and you were not told about it, this is
also reimbursed. The cost of some brokers commission was as high as
How big is your claim?
Why not give Scottish PPI Claim a call? With many years'
experience and a high level of success if helping people claim back
PPI compensation, it could be the best phone call you make