03 November 2014
Payment protection insurance (PPI) is a product that is now infamous, not so much the product itself but the way that banks, lenders and other financial institutions sold it to their customers.
Some customers bought it assuming they were doing the right and responsible thing, only to find that the product they bought would not offer them the protection they thought it did.
But, why are there are press stories of some customers claiming back thousands of pounds and yet other PPI compensation awards are smaller?
No of accounts - you will find that the majority of people who have received thousands back in PPI compensation had several accounts, from loans to credit cards, hence overall their PPI compensation was high. Many of these accounts, especially credit card accounts, may have also been at their limit for a long time too and this all adds up!
Time - many who have also received high PPI compensation payments (up to £86,000 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; over a long period of time, this adds up to a substantial amount of PPI compensation.
How PPI premiums were charged - on some loans, for example, the PPI premium was a fixed amount per month, but in the case of credit cards, for example, the PPI premium each month was calculated as a % of the amount outstanding. If you did not pay off your credit card bill each month, then this meant customers were paying a % of on thousands of pounds. This could add a substantial amount to the account each month.
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 compensation.
However, this has been rectified and customers know now that they are entitled to every single penny back!
Now that you have read this, you may be thinking that you could be entitled to thousands of pounds in compensation!
If so, why not Scottish PPI Claims 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 today.