PPI interest settlement

psr_2

Have just received a mortgage PPI settlement figure from my bank. (massive thanks to MLMSE!!) Letter states that interest due is counted as 'simple' (not compound) "as advised by the Financial Services Authority." Does anyone know if this is true or are they just pulling the wool as there is clearly a massive difference over a ten year period. Any experiences shared or advice would be greatly appreciated.
psr

magpiecottage

That is correct. However, 8% is considerably more than you would actually have been able to get from a deposit account over the last 10 years so to some extent it will cancel out.

psr_2

Dear Magpie Cottage - Many thanks. I appreciate that it is more than I would have got from a deposit account. I think our view of trying to ensure the max and to clarify so as not to miss out on any aspect of this settlement as we only came to claim after we were subjected to the most humiliating treatment by the insurers and the bank in respect of a claim on the insurance due to unemployment. Like you we are now firm supporters of this site and the good people who use it. psr