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Sums Awarded for Mis-sold PPI

As mis-sold PPI was such a money-spinner for the banks, compensation sums resulting from PPI claims can be considerable, often running into the thousands. 

This is the reason banks have been made to set aside billions of pounds in potential compensation for wronged borrowers.

Total PPI premiums paid for a loan can be as high as 50% of the loan amount, meaning they can add up to several thousand pounds, all of which can be reclaimed if you win a full refund of your mis-sold PPI.

Compensation sums resulting from PPI claims can be considerable, often running into the thousands. Total PPI premiums paid for a loan can be as high as 50% of the loan amount, meaning they can amount to several thousand pounds, which can be reclaimed if you win a full refund.

Claims can be considerable, often running into the thousands. Total PPI premiums paid for a loan can be as high as 50% of the loan amount, meaning they can amount to several thousand pounds, which can be reclaimed if you win a full refund.

Calculating the value of your claim

If you know exactly how much you pay every month for PPI then you can calculate the cost of the insurance simply by:

  • multiplying this by the length of the loan in months, for example if you paid £15 every month towards PPI over 5 years, then the cumulative outlay for the sake of the insurance policy will be £15 x 60 = £900.
  • if you do not have this information to hand then you can make a very crude estimate of the PPI costs by simply deducting a typical percentage (perhaps 15%) from the total cost of the loan, which can be calculated by multiplying the monthly repayment by the number of months for which the loan lasted.
  • as for credit cards, the amount paid towards PPI is not so easy to determine as payments differ greatly from month to month.

Typical compensation amounts

The table below gives a cross-section of typical loans and the amount paid for PPI on each.

Loan Type

Loan
amount

PPI
premium

Premium as a percentage
of total loan

Unsecured personal loan

£8,993

£2,217

25%

Unsecured personal loan

£11,000

£5,133

47%

Hire purchase for car

£5,059

£2,157

43%

Hire purchase for care

£6,895

£2,317

34%

Unsecured loan

£5,600

£744

13%

Secured loan

£25,000

£12,127

49%

Secured loan

£35,000

£10,150

29%

Conditional sale for car

£4,300

£2,394

56%

Unsecured personal loan

£13,000

£3,367

26%