PPI fopr a non-PPI guy

londonTiger

I never paid into a PPI. I took out a £5000 personal loan a few years ago and was hard sold a PPI but I refused to take it and my ultimatum was if I can't take out the loan without PPI I am not taking the loan. They then offered loan without PPI.

I was lucky in that I didn't really need the loan and was willing for it to be declined.

Anyway, I still keep seeing these PPI ads on TV, I would have thought the PPI would all be reclaimed by now/.

Out of couriosity what is the PPI claim? Do you claim exactly what you paid in plus interest. Or is it amount paid in + interest + legal fees to PPI claim solicitor?

As I recall the PPI I was offered was £5 a month or so for 3 years. So no much. But some companies are advertising PPI claims as much as £7000. Really struggle to see how anyone could pay that amount into PPI. Perhaps for a mortgage?

Insider101

londonTiger wrote: »

I never paid into a PPI. I took out a £5000 personal loan a few years ago and was hard sold a PPI but I refused to take it and my ultimatum was if I can't take out the loan without PPI I am not taking the loan. They then offered loan without PPI.

I was lucky in that I didn't really need the loan and was willing for it to be declined.

Anyway, I still keep seeing these PPI ads on TV, I would have thought the PPI would all be reclaimed by now/.

Out of couriosity what is the PPI claim? Do you claim exactly what you paid in plus interest. Or is it amount paid in + interest + legal fees to PPI claim solicitor?

You don't "claim" anything. You make complaint that you feel the product was missold stating your reasons. If the complaint is upheld, you will be paid redress which is entirely based on what you paid towards the policy, but is generally a refund of the full cost of the product including interest and statutory interest at 8% per annum. Credit card PPI, for example, could be up to £1 per month for every £100 outstanding balance. This means that people with £10k balance could be paying £100 per month, plus being charged interest on this at (say) 20% per annum. It can quickly mount up. As an aside, the vast majority or the companies advertising are not solicitors at all, just trying to con people into thinking they are.

As I recall the PPI I was offered was £5 a month or so for 3 years. So no much. But some companies are advertising PPI claims as much as £7000. Really struggle to see how anyone could pay that amount into PPI. Perhaps for a mortgage?

The companies are just plucking figures out of the air to sound good. If a complaint is upheld the redress is totally based on the amount paid in PPI. Mortgage PPI, incidentally, is usually the cheapest and best quality product of the lot. It has a far low uphold rate than loan and credit card PPI.

londonTiger

so how do the ppi claim companies make a profit? do they take a comission from the claimant?

-taff

Yes. Up to 40 or 50 percent.

Insider101

londonTiger wrote: »

so how do the ppi claim companies make a profit? do they take a comission from the claimant?

Yes. They take a percentage of any redress offered.

dunstonh

londonTiger wrote: »

so how do the ppi claim companies make a profit? do they take a comission from the claimant?

You pay them. Typically 25-35% plus VAT.

londonTiger

lol, in 10 years time people will be claiming unfair charges from ppi claim companies because they were charges for services not required. Fronting as no-win no-fee type operations and misleading consumers.