The sale of single premium payment protection insurance is now banned in the UK. The policies have been proven to be horrendously overpriced and severely lacking in real insurance cover. This is the time, if you have been burdened with one of these policies, to reclaim all your money.
To calculate exactly how much you are due is quite complex but is worth the effort as it will make sure you receive the absolute maximum amount you are due.
As well as the premium itself there are several other factors you need to include in the total claim. You are entitled to reclaim money from the very moment the whole loan came into force and this will dramatically increase the total amount which you are owed to.
These are the key elements that need to be added into your equation when you are reclaiming ppi.
1. You need to find exactly how much you were charged for the payment protection policy itself. This will be shown on your original credit agreement. If the policy is for £ 1,000: you will reclaim the full £ 1,000. If the policy is for £ 12,000: you will reclaim back the full £ 12,000.
2. You will need to calculate how much you have repaid toward that policy. If your monthly repayment is for £ 60 and you have paid for 30 months, you will reclaim £ 1,800. If your monthly repayment for the policy is £ 100 and you have paid for 4 years, you will reclaim £ 4,800.
3. Once you have the two totals from above you need to combine them and add 8% statutory interest, as allowed under the law, for each year the loan has been in existence.
It does not matter whether the loan is current or redeemed you are still entitled to reclaim ppi.
The only stipulation with a loan which has been paid off is that it has to be redeemed no later than six years ago. If the loan was repaid any earlier than that it will be time barred and excluded from any claims you may feel you have.
There are many standard templates and calculators which are available online which you can use which will simplify the whole process for you.
Once you have the final calculation you then need to assemble a letter of claim and present your claim to the lenders. Again there are standard letters available which you can use for this.
The key to this whole process is to make sure you claim for absolutely everything you are due. Doing it this way if the lenders come back to negotiate you are starting from the highest possible figure.
Alternately if you find the whole process a bit daunting there are numerous claims management companies and solicitors who will undertake the whole task for you.
Just make sure that you do not incur any upfront costs or pay any upfront fees for their services. There is only one side which should be liable for costs and that is the guilty party … the lender.