Reclaiming Complete Refunds from a PPI Claim

PPI is a policy designed to repay your loans, mortgages and credit cards in case you get sick or become unemployed. You actually lose £3000-3500 on average from a mis sold PPI. The only way to get back that money is through making a PPI claim. Here are a few things to know that will help you reclaim all your PPI refunds.

1.    Billing Statements

If you’ve collected all your bank billing statements for your loan or mortgage repayments, you could use them to have a rough estimate of how much refunds you are due. Confirm that these bills exist with your bank before you begin an attempt to reclaim your refunds.

2.    Compound Interests

In some cases, loan and mortgage repayments are tied together with the PPI repayments, and if you could prove that your interest rates increased because of the PPI repayments, you could be owed more than £3500. Compound interests can guarantee you a higher repayment rate, but you might need expert help. Claims experts are only the ones who could handle some details of PPI claiming involving compound interests.

3.    Settling

Contact your bank either by calling them or by writing a letter to them. Expect a response in a few days. Your bank can reach a decision about your PPI claim in two to eight weeks. If you are not satisfied with the response or you haven’t received a response, it is advised you seek help from the Financial Ombudsman.

Lump-Sum PPI Refunds and Compound Interests

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.