Some people feel that it is only worth making a PPI claim if they get a decent amount of money back from it. This amount of money will be determined by several factors.
The amount that you paid in each month will be determined by how much the insurance premium was. You may not know that amount easily as it will have been added in to your repayment amount. You will therefore need to take a look at the terms and conditions to find out how much you were being charged for it. It could be in the documents you were first issued with when you signed up to the loan. If it was a joint policy, then it is likely to have been more money.
The time that you were paying back the loan will be how long you were paying the PPI for. This could have been a long period of time, especially if it was on a mortgage. It could really add up and even if the actual amounts paid were small, over time it could be a significant sum of money.
By looking at your paperwork, you should be able to work out how much was being paid each month and how long for. This will allow you to see how much you are able to claim for. However, it is worth noting that if you use a lawyer to help you make the claim, then they will charge you. These fees will have to come out of what you get paid and so you need to consider whether it will pay. Get quotes from some lawyers and use that information combined with your calculations on how much you are claiming and decide whether to use one. It is possible to do the work yourself and save that cost.
It is worth noting that you may be able to make a claim on a selection of different policies if you had lots of loans with PPI. Of course, you can only make a claim if you can prove that you were miss sold the policy. This may have been because you were not eligible to claim it because you were not working hen it was taken out or because you were not told about it so couldn’t claim as you had no idea you could or that you were told you had to have it, when you did not want it. You will have to prove that one of these happened to you and some cases are easier to prove than others.
If you are not sure whether you have been paying PPI then take a look at the loan paperwork and it should tell you. Check all of the loans that you have had in the past and this should help you to add up how much money you were paying and therefore how much you will be able to claim for. It can add up to quite a significant sum of money for some people.
Chris is a tax consultant who loves to write on business and finance in his free time. He suggested one of his friends to get advice on claiming ppi when he was going through a rough financial year.