How the PPI Calculator Works

single-premium PPI

The PPI policy has one up-front premium (added to the loan). Interest is charged on this premium value and monthly payments include the premium's value and interest. There are 5 main considerations (quoted from financial-ombudsman.org.uk):

" - A calculation of the monthly payments that the consumer has actually paid towards the overall loan in excess of those they would have needed to make, if the original loan had been sold without the PPI policy;
- a restructuring of the loan going forward (if it is still in place) so that the amount owed, the monthly repayments, the term and the charges reflect those that would have applied, if the original loan had been sold without the PPI policy; or if the loan was terminated early, then a comparison of the settlement costs that the consumer incurred with those they would have incurred, if the PPI premium had not been added to the loan;
- The cancellation of the PPI policy (if it is still in place) – with any rebate in premiums being set against the costs incurred by the financial business in paying the redress;
- The addition of interest (normally at the rate of 8% simple per annum) to any excess payments made by the consumer – from the time each payment was made to the point the financial business pays them back to the consumer;
- Consideration of a payment for distress and inconvenience – for example, where the financial business rejected a complaint that it knew (or should have known) that the ombudsman service would uphold.

Our PPI calculator calculates a rough figure, however you should get in touch with us as the amount claimable depends on individual case details.

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