Halifax PPI Claim - Adjusted for Inflation?

gunnerjaeger

Hi there,

I've put a claim in to Halifax on behalf of my Grandfather for a Mortgage he took out in 1979. He was paying £21 a month every month from then until 2003.

We recently got the bog-standard offer from Halifax of returned premiums + 8% interest, but are the premiums paid adjusted for inflation? £21 in 1979 is worth £88.83 now, so you can understand that makes a bit of difference!

I can't attach the workings, but adjusting for inflation this claim went up to £13.5k from £6.5k due to the crazy inflation rates of the 80s.

Thanks for any help guys

dunstonh

We recently got the bog-standard offer from Halifax of returned premiums + 8% interest

You got lucky there. Currently Halifax are refunding everything whether you have a case or not.

but are the premiums paid adjusted for inflation?

no. The redress method is defined as premiums returned plus interest at 8%.

magpiecottage

I am surprised they are going back that far.

However the interest rate should be 8% from April 1993 but a higher rate (15%, I think) before then.

roonaldo

I didnt know PPI existed in 1979. The ealriest I have seen is 1986. Is that really correct gunnerjaeger?

The inflation theory is flawed and incorrect, if you were putting the money into a savings account at 8% for the entire term you wouldnt have got an inflation adjustment, in fact I cant think of one scenario where you would get this.

The correct redress method has been applied.