Although deciding to go ahead with a PPI claim is easy at a first sight, there are some factors you have to take into considerations. One of these factors is the amount of money you are entitled to get back from the insurance company. If the amount is high enough, it is worth to spend time and energy to go through the entire process. The simplest way to find out the potential refund you could receive if you make PPI claim is by using a PPI refund calculator.
Refund Calculator
Using a payment protection insurance refund calculator is easier than you may think. All you have to do is enter a few details about your loan such as the amount of loan, the total term for the loan (in months), the remaining term (in months), and the average interest rate. You simply have to push the “calculate” button thereafter. The calculator will show the approximate amount you could receive. Knowing this, you can decide whether to go ahead with the claim.
The 8% Interest Method
Most of the insurance companies who sell loan protection plans have an average of 8% interest rate. This means that in order to calculate the amount you should receive for your PPI claim, you have to count how much you paid for PPI until now and add the 8% interest to that amount. Time is still relevant. For example, if you had taken a loan of £ 10,000 over a five year period, and you were charged 15% relating the payment protection insurance, you would have paid £1500 for PPI. Add to this an 8% interest per year over 5 years and you will get another £600. With a simple summation, you get £2100 of mis-sold PPI that is payable to you.
What if You have More Successive PPI?
There is no standard rule to calculate loan protection refund if you had successive insurance. Each complaint is analyzed individually depending on the customer’s history. Usually, there are four scenarios that people at the insurance company follow to make the appropriate calculation.
- Your recent loan and the recent PPI policy are in operation
- The most recent loan exists officially, but the most recent PPI is cancelled or expired
- All your previous loans are cleared and all the PPI are cancelled too
- Your most recent loan and the attached PPI policy have completed the full term
PPI claimz made simple is one of the many companies that work with its customers to ensure they get their money back in the shortest time possible.
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