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Compensation interest
Aboroghene
Posts: 2 Newbie
An offer has been received for PPI going back to October 1992 for a loan. Previously I was advised that despite the Exchange Rate fiasco that year interest for compensation was set at 15%. My bank says that they are complying with Financial Services. Can anyone definitively confirm precisely what it should be I have spent hours looking?
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Comments
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They're correct. You get the higher rate due to the age of the loan (prior to April 1993), rather than the usual 8%.1
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15% is actually very generous, BoE base rate wasn't that high even at the peak in 1989 (14.875) and by 1992 it was 6.875% so even allowing for company charges it's still a good return.Remember too the FOS rule is 15% for each year before 1/4/93, 8% after that
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