It might seem like a simple concept to grasp but the meat of the idea about PPI claims and PPI compensation can be quite confusing for the average consumer.
Banks would not make steps to clarify these for you. However, claims managers can tell you more about PPI compensation.
Your PPI claim protects your financing. Often, it costs about 25% of your total financing. For a £20000 personal loan — as an example — that value can be around £3000.
That means your PPI could cost about £325 in yearly APR if it has a rate of 8%. Give or take.
You can calculate your PPI compensation if you take the 8% off your final APR amount. So if you had to pay for PPI in five years, the formula would be:
325 x 5 = 1975
Now, 8% of the £1975 APR total would be your PPI compensation which would be £158
PPI compensation is a Supreme Court order that has banks pay an additional ‘hassle fee’ to consumers who were mis-sold PPI.
If you were mis-sold PPI or need to find out if you were, it would be wise to talk to a claims manager. Better yet, if you have not the time to make your claim, using their no win no fee services is a must.