You’ve heard it on the radio and you’ve seen it on the TV: mis-sold PPI is the biggest banking scandal of our time. So much so that almost every person in the country who has taken any kind of loan from a finance provider (mortgages or credit cards) since the early nineties has a reasonably good chance of being able to reclaim money from PPI compensation.
But how much money could you be entitled to receive? Well, this depends on a number of factors including the type of policy taken out and the money set aside for PPI compensation by banks.
Payment Protection Insurance (PPI) was sold, often using misleading sales practices by big money lenders, alongside personal loans and other products including credit cards. The policies were meant to cover repayments if customers were sick or unemployed, but often the banks did not pay out or the buyers did not qualify to receive any benefits in the first place.
Money Set Aside By Banks for PPI Compensation
PPI is the UK’s biggest mis-selling financial scandal. The amount set aside is almost double the £11.8 billion bill for misleading pension sales and is much higher than the £2.7 billion amount for mortgage endowments.
In fact, so far banks in the UK have earmarked over £22 billion to compensate the people they wrongly sold PPI to.
Many major banks have money aside for PPI compensation, including those listed below:
- Lloyds Banking Group
Britain’s major retail bank, which also owns Halifax and the Bank of Scotland, is responsible for almost half the total cost of compensating customers. They have set aside £9.83 billion for mis-sold PPI refunds.
Barclays have set aside an extra provision of £1.35 billion, taking the total it has set aside to £4.13 billion for PPI compensation.
- Royal Bank of Scotland
The government-controlled bank has set aside an extra £465 million for PPI, taking its total provision to £3.1 billion for mis-sold PPI.
The total bill amount set by HSBC is £1.7 billion for PPI compensation.
Now the question arises- how much money are you entitled to get from your bank as PPI compensation?
Firstly, you will need to determine whether or not you have been mis-sold PPI. The best way to do so is to use our free PPI check services. You can do it by simply filling out our Free Check form. We will use the information you supply us with to contact your bank or lender and find out if you were mis-sold PPI on any credit cards or loans that you may have taken from them.
The amount that you may be entitled to get for a mis-sold PPI policy is determined by many factors.
Two of the first things you’ll need to know about your PPI policy to determine the amount you will receive is:
- a) Whether it is/was a single premium policy or a monthly premium policy and
- b) Whether it’s for a loan, mortgage or credit card.
How Can You Find Out What Type of Policy Your PPI Is?
PPI has been mis-sold to millions of people across the country. We believe that a vast majority of those people have not claimed for PPI compensation because they don’t know that they have it. Banks are not obliged to write to you about mis-sold PPI and offer you your money back, therefore it is important to take action yourself.
Although The Financial Ombudsman service has guidelines for banks and lenders, the banks do not always follow them. It is not uncommon for claimants to be underpaid and this is why it is important to negotiate with the banks to refund their customers the correct amount of money.
The easiest and simplest way to find out what type of PPI policy was added on to your account is to find the original credit agreement for the loan or mortgage concerned. This will show you what type of policy you have as well as indicate the cost of the PPI.
You could also check your bank statements if you have already taken out a loan or credit card; the charged amount will be reflected on it. If you think that you have been mis-sold PPI there are a range of products that you should check. These include:
- Credit cards
- Secured loans
- Car finance
If you are unable to verify whether or not you have been sold PPI with any of your finances, then a Free Check service online will make it clear to you. The free PPI check service providers will confirm with your lender or banks if you were sold PPI and once they return the results, you will be informed of the outcome.
How Much Money Can I Get Back As PPI Compensation?
The larger your credit card balance or loan was, the larger the PPI compensation you are entitled to. We are talking an average of around £3000 from your bank or money lender. In simple terms, you will not know until you are made an offer with interest, and when the offer is received, many people are surprised by the enormity of the refund.
In order to decipher a reasonable amount you could receive as compensation, you can use free check services online. While using any online free check services, make sure that you include all of your contact information on the application. Your full name and address will be required to send you the forms needed to process the claim (if you have a mis-sold PPI). Do not forget to include all of the places that you took out loans, mortgages and any credit cards that you signed up for, don’t worry if you don’t have the account numbers we can process the check without these. After checking each and every one of your accounts to see if you have been signed up for PPI on your finance, the results will be forwarded to you.
The PPI scandal has affected millions of people over a decade but the majority of people who are entitled to compensation do not know where to start when it comes to making a claim for compensation. It is important to understand what you are paying for when you borrow money because there may be hidden costs.
If you are not sure whether you are entitled to file a claim, we can assist. At 3DM Legal, all you have to do is complete the application on our Free Check page so we have the information we need to find out if you could receive a mis-sold PPI claim and how much you money you can get back. You can either complete the application online or get in touch with us directly on 01604 420068 and we will be happy to assist you in receiving the compensation you deserve.