Payment protection insurance is old news. It’s showing its age, especially now that the City watchdog the Financial Conduct Authority is planning to impose a deadline to encourage all consumers to make a claim as soon as possible.
However, the Professional Financial Claims Association believe banks have only paid £11.5 billion back to consumers. The remaining £22 billion comes from their interests.
Interests are paid on compounded payment protection insurance policies included in loan, mortgage or credit cards owned from 1990. These amount multiply the average £3500 for single-premium payment protection insurance by twice its price.
Yearly, banks pay an additional 8 per cent interest to consumers with mis-sold PPI from the 90s.
Three sums make up the total of a compounded mis-sold PPI policy.
The actual cost of your premium is the prime multiplicand. Meanwhile, your multiplier is the interest rates that increase or decrease depending on your credit discipline.
If you haven’t been diligent in paying your dues, the premium’s value increases. You have been repaying these additional fees to your bank without your consent.
Calculating these numbers requires lots of paperwork and a complete review of all your transactions regarding your loan, mortgage or credit card.
There are other ways to earn your refunds for policies originating from two decades in the past.
Aside from the calculations of your interest rate is an additional 8 per cent interest rate that we mentioned earlier.
The deflated value of two decades in the past for the insurance policies is also taken in consideration.