Once you have found out whether or not you hold a payment protection insurance policy it is relatively straight forward for you to find out whether or not that particular policy has been mis-sold. Difficulties however tend to arise when you try to predict the potential pay out which you will receive from your payment protection insurance reclaim if you do not have the full details regarding your policy.
There are many ways in wish you can attempt to combat this issue such as a PPI reclaim calculator but they will all have a variety of issues, pros and cons depending on the amount of information you have. Generally, the more you know about your payment protection insurance policy the more accurate your claim back pay out will be.
Of course the first step in predicting how much money you will get back when you make a PPI reclaim is to look into what exactly a payment protection insurance pay out consists of. This is simply three different amounts put together to form one pay out and is a refund and compensation. Part one of the PPI policy pay out is a refund of the amount that was spent on the actual policy, this is generally a set percentage of the value of the overall loan that the PPI policy was being sold to protect. Part two is the refund of the amount of interest that you were charged if you were paying for the policy on a monthly basis and this was the most common occurrence. Part three of the PPI pay out is compensation for the troubles that were caused as this was through no fault on your own and the banks have accepted complete responsibility for this scandal. The compensation is set at 8% of the refund you will receive and this is added on top so you receive one lump sum in your pay out.
The easiest way to get an approximate estimate on the potential pay out you will receive from your payment protection insurance policy claim is by using a PPI reclaim calculator. A PPI reclaim calculator simply involves entering your loan value, the length of the loan and if appropriate, the number of months that remain on your loan. These work by estimating the cost of the monthly payment protection insurance policy payments and multiplying it by the number of months which you have paid for the policy and then adding any potential interest and compensation on to the total amount. Read More