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Compensation interest

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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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  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    First Anniversary Photogenic Name Dropper First Post
    edited 24 January 2021 at 8:02AM
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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%.
  • [Deleted User]
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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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