Claim for PPI - confused by low amount offered

Richmond1959

Is the amount due the same for all companies? My sister has lodged a claim with Welcome Finance. According to the calculations we made, she was expecting something in the region of £6000 for 2 loans. They have offered £1,022. How can we find out if this is correct? Thanks, she is devastated!

amersall

This depends on a lot of factors.
1) is the loan still running
2) was it settled early
3) what was the total PPI amount with interest.
4) was this through Welcome or FSCS?

Did they not give a breakdown as to how they arrived at this amount?.

BLINDEDBYMEDIAPROPAGANDA

Richmond1959 wrote: »

Is the amount due the same for all companies? My sister has lodged a claim with Welcome Finance. According to the calculations we made, she was expecting something in the region of £6000 for 2 loans. They have offered £1,022. How can we find out if this is correct? Thanks, she is devastated!

As them for a letter with a breakdown of their calculations which you are perfectly entitled to do.:)

elunia123

amersall wrote: »

This depends on a lot of factors.
1) is the loan still running
2) was it settled early
3) what was the total PPI amount with interest.
4) was this through Welcome or FSCS?

Did they not give a breakdown as to how they arrived at this amount?.

If the loan was not settled early-but just been paid off- may I expect the full PPI to be refunded??

ALIBOBSY

elunia123 wrote: »

If the loan was not settled early-but just been paid off- may I expect the full PPI to be refunded??

What most banks do is refund any PPI paid in the installments you made then restructure the rest of the loan after the settlement to work out how much you overpaid due to the PPI(taking into account any rebates and early settlement reduction).
Different banks seem to use slightly different calculations and as long as they can justify them to the FOS (who just gicve guidence that you should be put in the position you would have been in had the PPI not been paid) its allowed. TBH they all refund any PPI premiums paid its just how they do the interest calcs and this seems to have room for manoeuvre.
The earlier you settle the more it impacts on the settlement and obviously they aren't going to refund money not actually paid.

You can ask for them to provide further info and if you still aren't happy go to the FOS.

Ali x