How much PPI can you claim?

It may be the case that you have purchased a PPI but when tried to claim money from it, found that you were successful. Or maybe it is that there is a lot of money to reclaim. Your lender may not be be able to give you a figure with regards the amount you can claim but you can work it out for yourself.

The formula to work out the insurance cost on loans is the easiest one. Begin with the length of your loan and multiply it by how much you repay each month. Then take away 15 percent. This gives you an idea of how much insurance you are entitled to reclaim. The 15 percent figure is an average, however, it can be anywhere between ten and thirty per cent of the total cost of the loan.

It is more difficult to calculate the total insurance cost for credit cards. Although, there are regular monthly payments for loans, monthly charges for credit cards depend on what you buy. You will likely be forced to make a rough guess but you can get as close as you can with a small amount of calculation. Gather your credit card statements and add up all of the insurance charges you paid right from the start. If you don’t have these statements, use the average figure to make a guess.

If you have not kept your loan agreement or credit card statements, ask your lender to break down and explain each charge you have been subjected to. Ask them about how much the PPI policy is and how much you’ve paid so far. Ask for this in writing so that you will be able to record all communication.

They are obliged to respond within forty days. If they don’t reply within that period, you are entitled to make a complaint to the Information Commissioner. It is considered good form to make a telephone call to the lender to make them aware that you will be making this complaint.

Find out how to claim back PPI online.