If you’re a payment protection insurance claimant intending
to get all your refunds, you’ll need to be prepared. Banks and lenders will try
anything to discourage you from making your claim and one of these is offering
you a lump-sum repayment. By offering you a lump-sum, you get at least 60% of
the actual compensation you should receive, or even less, but you avoid the
hassle of making a PPI claim.
Most customers will not settle for this amount. However, it
is very practical to consider weighing your options before you proceed to make
your own PPI claim. A lump-sum offering from a bank may be because a situation
is so complex that you’ll need legal and expert support to resolve the issue.
Surely, you could get a higher refund, but claims experts usually charge you
25-30% of the amount you get from the refund, which might be the same amount as
the lump-sum offering, maybe even more.
But you will want to avoid a lump-sum repayment if you know
that the PPI caused your loan interests to increase. These compound interests may
be complex and you might need expert help to calculate the total costs of your
refunds. This is when it is advisable to call in legal help when needed and
much better if you can do it on your own.
However, it is not always a bad deal when you get a lump-sum
offering. If you really see that your repayment amounts should be higher, then
calculate your actual refund before you ask for expert help.
