How is PPI rebate worked out

Sarros

Just wondered if anyone could advise how insurers work out the PPI rebate on a loan that was settled early. For example on PPI of £2472 that was added to loan over a 10 year term that was settled after 2 1/2 years. Thank you.

dazza12

There are too few details within your post for anyone to work it out such as dates etc.

However, the following link is a good resource as to how a lender should work out redress:

http://www.financial-ombudsman.org.uk/publications/technical_notes/ppi/redress.html

Sarros

Hi Sorry, I was a bit vague wasn't I...what I am trying to find out is the PPI rebate/cashback. Our loan started at end of January 2005 amount borrowed £15,000 with £2472 PPI added as a single premium. The term of the loan was 15 years (sorry not 10 as stated above). We settled the loan after 2 1/2 years (May 2007) and I have been told (on here) that some rebate of the PPI should have occurred on early settlement and probably was included in the settlement figure. Unfortunately I cannot find the settlement figure breakdown as this was dealt with by our solicitor in our house sale (which is why we settled early), we received a general breakdown by the solicitor and this included everything involved in selling and buying a house fees etc but did not go into the detail of how the settlement figure was broken down. The loan payments each month were £252 of which £195 was interest so I am pretty sure we were on a high interest rate.If I could get an idea of how much PPI was rebated I might be able to work out a rough figure of what kind of settlement figure/redress we could possibly expect to receive.

By the way our complaint has been upheld.

Thanks

[Deleted User]

Sarros wrote: »

If I could get an idea of how much PPI was rebated I might be able to work out a rough figure of what kind of settlement figure/redress we could possibly expect to receive.

I think your best option is to wait for the Bank to make their offer.