Mortgage PPI refund amount

ColinW_G12

Hi


A general question. I recently did a PPI search and was surprised when I got 5 different refunds on various accounts with RBS. There were 3 loans, a credit card and my old mortgage. I was a bit surprised that the mortgage PPI refund was lower than a couple of the loans and wanted advice if people thought that was OK. In my head I assumed that as the mortgage was in reality, the biggest loan that the PPI amount would be the highest. Maybe there is a reason that it's not. Just wonder, before I accept the offer from RBS if I should investigate more.


Thanks in advance for any insight


Colin

Nearlyold

Ask them for a breakdown of the calculation if you don't already have it. The size of the refund will depend on how much premium you paid and how long ago, there is always the possibility you only paid the mortgage PPI for a short time because you cancelled it for some reason.

[Deleted User]

ColinW_G12 wrote: »

In my head I assumed that as the mortgage was in reality, the biggest loan that the PPI amount would be the highest. Maybe there is a reason that it's not. Just wonder, before I accept the offer from RBS if I should investigate more.

Perhaps you re-mortgaged at some stage with a different lender/ PPI? Or is this perhaps a Plevin refund of undisclosed commission?

Remember, there really is no point trying to contest the refund amount solely based on other refunds. You'll only ever receive a refund of the amount you paid plus interest.

If you have documentary evidence that the Bank have refunded less than you paid, you should of course submit it. Otherwise either read carefully your offer letter, or ask the Bank to clarify how they have calculated your refund.

-taff

There is no 'offer', redress is a defined calculation.

SonOf

If this is a plevin refund, then you would expect the redress on mortgage PPI to be much lower.

If its a full refund of premiums plus interest then you wouldnt normally see associated interest with MPPI as most MPPI plans are not paid within the mortgage but standalone. Plus, MPPI is regular premium. So, the timescale when working out interest is not the start date but the payment date of each one.

MPPI is also the lowest in cost. Most people paying MPPI paid around £15-£50pm per month. Loan PPI was often in the thousands.

Bermonia

NatWest/RBS loans were single premium loans (front loaded) which meant they incurred associated interest, also early settlements were not made on a pro-rata basis therefore more often these loans have higher redress figures than MPPI

[Deleted User]

-taff wrote: »

There is no 'offer', redress is a defined calculation.

The Banks themselves refer to it as an "offer", hence "offer letter".

"We would like to offer in full and final settlement....."

-taff

Yes, an offer to accept or reject, not in the sense that it is a proposition, that there is further haggling to do about it.