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Archive for tag: PPI Compensation

Do You Know How Much PPI Compensation Could Be Due To You?

In all the information circulating about payment protection insurance (PPI), there is not much on how much compensation people could actually be claiming back. In this article, we look at what is taken into account, the 'official' process of what compensating someone actually is and where the average payment figure comes from.


£2,750 - is this the magic figure?

When the PPI mis-selling scandal broke into the mainstream news, there were all manner of experts and people who professed to know the depth and scale of the problem was.

The truth is, the scale of the problem did not become apparent for some time. When it did, it was shocking.

In essence, the figure of the average compensation for mis-sold PPI of £2,750 is obtained when the value of the policies sold is divided by the number of customers who bought a policy, giving a compensation guide figure of £2,750.

However, in many cases the actual compensating people received was far less and in other cases, far more.

What factors influence the compensation amount paid?

There are many influencing factors including:

  • The length of time you have been paying premiums on a PPI policy- the longer you have had the policy, the more you will have paid, the more you will be entitled back.
  • The number of PPI policies you have- PPI was applied to credit cards, bank loans, in some cases mortgages and so on and thus, it may be possible you were paying into more than one policy at a time. Again, this will increase the compensation you could receive.
  • The level of premium varies too- some policies were paid for in one lump sum, others with a premium every month. In some cases, the premium was calculated as a percentage of the amount left owing. This was common for credit card accounts thus your PPI compensation could be significant.
  • Fees and costs- in some cases, customers were also charged arrangement fees or faced costs when their account was in arrears, sometimes as a direct result of having PPI added to them. These should also be reimbursed.
  • Commission- the FCA decided in 2017 after a recent court case that if you paid commission which was more than half the cost of the loan and you were not told about it, you can claim this figure back too.

What's the official line on compensation payments?

There is a phrase that is used when someone is receiving compensation as a result of a financial product being mis-sold to them. The same is true when it comes to PPI compensation. It says that customers should be put back to the financial position they would have been in had the policy or product not been sold to them.

In other words, you should be no worse off!

Do you have a claim for PPI compensation? Why not find out today by calling Payment Protection Scotland?

What Can You Spend Your PPI Compensation On?

Of all the questions we are asked about claiming for mis-sold payment protection insurance (PPI), this is the one that gives us the most joy to answer.


In the main, you can spend your PPI compensation in a way that you see fit but, many people have all kinds of questions about the windfall that they receive, more so when the amount they claim back is substantial.

I am in debt. What should I do with my PPI windfall?

This is a good question, the answer to which should be explored with an independent financial advisor. Every person's situation is different and thus, this is only a summary of what you could do and is not meant as advice on your debt issue.

If you have an Individual Voluntary Agreement(IVA) or in a type of sequestration agreement, you may find that your PPI compensation will be seen as a windfall. In law, this means that it must be used to pay off creditors and agreements etc. Failing to do so could land you in trouble which is why we always strongly advise seeing a debt expert.

If your account is in arrears and there is no formal or legal arrangement as above, it helps your credit score to pay off these arrears, and bring any accounts back up to date. It also true to say that if you can afford to pay off the debt, this places you in a strong negotiation figure. Ask the bank or lender for a settlement figure, as this could be less than what you owe.

Can I spend it on anything?

Yes you can, but there has been some research about how people do spend their PPI windfall and the results are interesting:

  • The vast majority of people bought a brand new car. This in itself has proved a valuable boost to the care sales within the UK and thus, has had a positive knock-on effect on the economy.
  • The second largest spending category of PPI compensation was onhousehold goods such as freezers and so on, for the home. Again, this has proved a valuable boost to the economy.
  • Thirdly, people enjoyed a well-earned break, taking a holidayto foreign climes.
  • Many people chose to save their windfall, and some spent it on food, as well as buying clothes and shoes for the family.

Can Payment Protection Scotland help me claim money back?

We could if you have an eligible claim for compensation. Why not call now to find out more?

Unsure About HOW to Claim PPI Compensation?

We have all the information that you need! Browse through our list of what to do (and what to avoid) in order to claim your money back…


DO check out how your bank or lender is accepting PPI claims

Banks and lenders have been told by the banking regulator to make claiming PPI as easy and as simple as possible. This means making PPI compensation claim forms and information on how to make a claim readily available.

Most banks and lenders have these on their website. In most cases, you don't need to phone them and with some lenders, you can log your claim online too.

DO turn to the right people for help

The internet is a wonderful place BUT, it can be full of misinformation and wrong turns. This is why if you are unsure of any aspect of advice or help, you turn to the right people.

Claim management companies are, in the main, professional, expert and reputable companies who specialise in all kinds of compensation claims. Choose one that has a long and successful track record with PPI claims, like PPI Scotland.

DO make a claim for PPI compensation before the 2019 deadline

If you think you have been mis-sold PPI, don't let the bank get away with it! Make your claim. You could be entitled to thousands of pounds in premiums, interests and any costs or fees incurred on your account as a result of PPI being added to it. And with the deadline only months away, you need to start your claim now.

DON'T let the banks get away with it

Banks and lenders knew that PPI was not a policy that was suitable for the large majority of customers to whom they sold it. For example, banks knew when people were self-employed but this didn't stop them selling a policy that was not really suitable for self-employed people.

DO claim, even if you agreed to PPI

Many people assume that because they agreed to PPI, they don't really have a claim. The point is, that many banks and lenders didn't give you the full facts about the policy and so what you agreed to, is not the policy that you were paying for.

For example, if you knew that the policy did not cover your existing medical condition, would you have still bought it? The likely answer is no, as the one thing that could stop you from working and therefore making repayments on your loan, would not have been covered by the policy.

DO call Payment Protection Scotland

We have a long, successful history of helping people claim their money back. From a few hundred pounds to thousands of pounds, there is probably PPI compensation with your name on it!

9 Things You Need To Know When Making A Claim For PPI Compensation

#1 You need to be sure you have PPI on the account

Look for an insurance policy that promises to make repayments on the loan etc. if you are unable to do so. It may go on to say that this could be because you are unable to work due to ill-health or losing your job.


#2 It might not be called PPI

Payment protection insurance or PPI is a generic name. Sometimes, banks and lenders renamed it by branding it so it was part of their products. Look for an insurance product that promises benefits as listed in the first point - if it says this, it is PPI.

#3 Check with your bank or lender how claims are to be made

You can make a claim for PPI compensation yourself. If you decide to do this, check with the bank or lender what the process of claiming your money back actually is. You can find this out by checking their website or giving them a call. It may be that you complete and submit a form.

#4 Some companies offer no win, no fee services

PPI Scotland is a reputable claim management company who offer their services on a no win, no fee basis. This means they can make a claim on your behalf and you only pay them if they are successful.

#5 A really good claim management company will not hide their fees

Like other professions, the claim management profession has mainly great companies operating but there are some who offer a poor service in exchange for very expensive fees. If the company are not too clear or very forthcoming on how much they charge for their services, leave well alone.

#6 You could claim commission back even if PPI was not mis-sold to you

If you paid more than 50% of the cost of the loan in PPI and were not aware, you could claim this money back even if the PPI policy was not mis-sold. This could affect thousands customers.

#7 Check all accounts… and check them again

From personal and unsecured loans to mortgages and credit cards, as well as store cards, you will be amazed where PPI lurks. You will also be amazed that you have PPI as you may not knowingly have bought it.

#8 You are part of a large group of customers yet to make a claim for PPI compensation

Although the compensation bill stands at £24 billion, and banks are saying that they won't need to add more money to their compensation pots, over half of the customers who have a PPI claim are yet to do so. Are you one of them?

#9 You must claim before the PPI deadline August 2019

Time is ticking. What are you waiting for? Contact the team at Payment Protection Scotland today.

Time IS Running For for PPI Compensation Claims

As we basked in the summer of 2018, there is a dark cloud looming on the horizon. The rumours were rife for a long time and the banks were supportive of the move but, it has pros and cons for the customer.


What are we talking about? The PPI compensation deadline August 2019.

Time is out for PPI compensation claims. There are now 12 months left to make a claim. Make your claim or face missing out.

What is PPI?

Banks have set aside more than billions in compensation so far making the mis-sale of PPI the biggest scandal to have rocked the financial industry in the UK.

People were sold policies that they either did not want or could not have claimed on.

Typically, the PPI policy was sold alongside another financial product such as personal loans, overdrafts, credit cards, stores cards, car finance and so on. The idea was that the policy would make repayments on your debt should you fall ill, and your income was affected.

The worst offender in this mis-selling debacle is Lloyds Banking Group who has set aside another yet more money to make forthcoming compensation payments.

What was highlighted as part of the compensation deadline debate was another issue and one that PPI Scotland have been saying for a long time - there is a whole group of people out there who think they are not entitled to claim PPI but are!

Do you have a valid claim?

If you don't have the paperwork, call the original bank or lender who made the loan and ask them for copies of all paperwork relating to your loan or credit card etc. They must keep paper copies for six years but, they may have digital copies that date back further than this.

You can make a claim on any account on which you had PPI and there is no time limit on these accounts.

However, it may be more difficult in some cases to claim compensation on an account that is very old but, the banks and lenders are realising that the industry has suffered badly as a result of this scandal. As a result, they are compensating in most cases, quickly and fairly.

Do you have a claim?

Make it now before any deadline is announced! If you had a loan, credit card or any other kind of credit product in the last decade or more, the likelihood is you were sold PPI too - claim your money back with Payment Protection Scotland.

Why You MUST Claim PPI Compensation!

Lloyds Banking Group has set aside another £460 million to cover the 13,000 PPI complaints a week that they are expecting to receive. Even if you don't bank with Lloyds banking group, there's a good chance there is a stack of your money out there, waiting to be reclaimed.


The amounts vary

Some people have received tens of thousands of pounds back in compensation, whereas other people have received a few hundred pounds.

Whilst you may be initially disappointed with this small amount, it is important that you claim your money back, no matter how large or small the compensation payment is.

And here's why;

#1 It is YOUR money

Whether it's a few hundred pounds or thousands of pounds, it is your money that the bank took in payment for a product that they mis-sold you. In some cases, this selling was deliberate and intentional.

In other words, they knew that the product was not right for you but they still sold it to you. Fuelled by profit, commission and sales targets, they sold policies to people who were not covered by it. Thus, you were wasting your money.

#2 They didn't give you all the facts

If you bought an item in a shop and found out it didn't work, what would you do? You would take it back an either ask for a replacement or your money back. Now imagine if when you took the item back, the shop assistant just shrugged their shoulders and said that you should have known it was broken.

You would be appalled at this attitude. In some ways, this is what happened when lone customers complained about PPI many years ago but, with perseverance and the power of consumer groups and regulators, the poor practice behind the mis-selling of PPI was made public.

PPI was a product that was faulty before you 'bought' it and in most cases, the banks and lenders did not give customers all of the facts about it.

#3 Stops poor selling practice

Banks and lenders look very different today than they did a few decades ago. They are now businesses, in the market to make a profit and this means selling products.

The majority of their products, if sold in the right way to customers who will benefit from them, are excellent. But PPI is an example of how mis-selling snowballs out of control.

By claiming PPI compensation, you are part of the growing movement to stop bad selling practices happening within banks and lenders, as well as the financial industry as a whole.

These are just three reasons why claiming PPI compensation is something you must do. To find out how we can help before the August 2019 deadline, call us now for more information!

Why Aren’t You Claiming PPI Compensation?

It takes ages, too much fuss and doesn't apply to me…

We hear this so many times but claiming back payment protection insurance premiums is not difficult.


In many cases, it is relatively straightforward but even where cases are complex or claims refused, there are still ways to address the PPI compensation issue.

It takes ages…

Time is important when it comes to making PPI claims. Many people believe that they beyond time limits or the whole process takes far longer than they think but when you use a company like Payment Protection Scotland, they know what needs doing and when a response needs to be received.

Straightforward cases, where PPI was clearly mis-sold, claims should take between 8 and 12 weeks to resolve. However, some banks are more inundated with PPI claims than others but they still need to respond to you within an 8-week time frame.

This response could be something along the lines of "we have received your case and are looking into it. You will hear from us again by……"

The banking regulator has told banks they must stick all deadlines and if they cannot, they must inform the customer, giving them a clear idea of when they can expect their PPI compensation claim to be resolved.

There is now a PPI deadline in place.
Make sure you have your complaint lodged before 29thAugust 2019.

Too much fuss…

Straightforward claims are relatively easy to resolve and take very little fuss than other cases.

However, what many people are basing this claim on is that in the early days of PPI compensation claims were slightly fraught and any compensation claimed was a fraught process.

Banks were reticent about paying back PPI premiums in the early days as they knew that once the PPI ball was rolling, it would be very difficult to stop.

Judicial reviews and pressure from consumer organisations and the like, the PPI compensation process is now much, much smoother.

Doesn't apply to me…

Many customers think that the windfalls they have been reading about are all about someone else's good fortune.

The biggest payout believed to have made thus far is in triple figures. The accumulation of credit cards and overdrafts over time led to this large payout.

It may be that your PPI compensation is a more modest figure - the average is currently thought to be around £2,750 but for many people, this is a welcome injection of cash back into their bank account.

Many customers, of course, receive much more than this and some people receive less; either way, it is YOUR money that you have been made to pay in error by your bank. No matter how large or small the sum is, on principle, you should claim your money back!

PPI Compensation and YOU!

Do you have questions about claiming PPI compensation that need answering?


Question 1: Does lost paperwork mean a lost opportunity to make a PPI claim?

  1. Yes, all paperwork is needed to prove to the bank you have PPI on your account
  2. No... but finding copies can be costly and time-consuming
  3. No, it does not prevent successful PPI compensation claims being made

And the answer is...

C - successful PPI compensation claims do not rely solely on the presence of paperwork. What you will need to prove, however, is that you were mis-sold PPI in the first place. Paperwork regarding loans and other credit agreements can be obtained from your bank or lender (there may be a small 'searching' fee for this) and there are other avenues that can be explored to obtain the necessary details.

Question 2: If I am in debt, is there any point making PPI compensation claim?

  1. I won't get a penny back in compensation
  2. It will adversely affect your credit rating
  3. Yes, because it could change your credit score for the better!

And the answer is...

C - many customers often assume that to claim PPI compensation they must have an excellent financial record and not be in debt. What many people don't realise is that their debt situation has been made worse by the addition of PPI to their accounts, probably the reason why they struggled to make payments as PPI added an unforeseen debt to their account.

Some banks or lenders will wipe out a large chunk of the debt as part of the PPI compensation amount. And, it is a real possibility that you could receive a chunk of PPI compensation and be debt free!

Question 3: Why do I have to 'make a decision' like the PPI adverts tell me I have to?

  1. Because there is a PPI deadline
  2. Because the banks say you have to
  3. Because people are bored of PPI

And the answer is...

A - there is a PPI deadline in place. If you want to make a claim, you must do so by August 2019. Making a claim for PPI compensation needn't be complicated although some cases are more complex, but can still be resolved. Making PPI compensation claims need not be tedious or boring either.

If you think that making a claim for PPI compensation is complicated, then why not engage an expert claims management company, like Payment Protection Scotland to make a claim on your behalf.

Give Your Financial Well-Being a Boost with PPI Compensation

Many customers worry that it will be stressful or take a long time but claiming PPI compensation can be quick, simple and very easy!

Financial Boost

But there are cases where a little more pressure is needed, a little more insistence, or more of an argument for why you are entitled to your money back.

With a reputable claim management company, like PPI Scotland on your side, this is not too onerous a task.

Do I have an eligible claim for PPI compensation?

Many people worry that they do not have a valid claim and will be one of those customers highlighted in the press as making disingenuous claims - in other words, trying to claim something that isn't theirs to claim.

There is a difference between attempting to make a claim for compensation when you know you do not have a PPI policy, and those people who have a policy but their claim is denied.

Where to look for PPI

PPI was commonly mis-sold alongside;

  • credit cards
  • store cards
  • catalogue accounts
  • personal or unsecured loans
  • mortgages
  • and so on

Thousands of people were sold an insurance policy that they would not be able to claim on - and this could be you!

If the bank says no, is that the end of your claim for PPI compensation?

Banks and financial companies have a very different attitude today than they did a few years ago. They want (and need!) to be seen to be doing the right thing by their customers. They also want to be seen reimbursing their customers quickly and with the right amount of PPI compensation.

There are still some cases where some banks are refuting claims. In some cases, there are very complex reasons for this. That said, this does not mean that this is the final decision.

There is one more avenue left to explore and that is to submit your case to the Financial Ombudsman Service (FOS). This organisation works on financial complaints brought by customers against a financial institution here in the UK.

It doesn't just work on PPI compensation claims, but all kinds of cases. They have a huge number of case being referred to be by customers who have been refused compensation but who believe they are entitled to it.

They have been finding in seven out of ten cases in favour of the consumer but, there are no guarantees. FOS have also indicated that cases are also becoming more complex and as such, take some time to resolve.

Can Payment Protection Scotland help anyone?

We can work with anyone who believes they have been mis-sold PPI on their account or accounts. We will need proof that there is a PPI policy and then we can take steps to claim your money back on your behalf.

PPI Compensation to End SOON!

If you are yet to make a claim for PPI compensation then you need to make a decision and move fast. The PPI 2019 deadline is only a year away but there are still thousands of people yet to claim. Are you one of them?

The End

For so long, the issue of a PPI deadline was a sensitive one. But it now seems that the Financial Conduct Authority (FCA) want to take a more conciliatory tone with the banks and draw a line under the PPI mis-selling saga.

The case FOR a deadline

Larger banks and lenders have been hit hardest by the PPI mis-selling scandal.

With mis-sold policies being accountable for 80% of their annual profits for several years running, they have the most to lose, it would seem, when it comes to paying customers back.

They canvassed the Financial Conduct Authority and the Financial Ombudsman for some time for a PPI compensation deadline to be imposed.

But for many years, the FCA were having none of it. But its changed it mind. Why?

The case AGAINST a deadline

Not all banks and building societies were in favour of imposing a deadline. Smaller lenders said they needed more time to balance their books.

A sudden flurry of claims for PPI compensation, they said, could really sink their banking ship.

They preferred spreading out the claims. Some years on from this initial argument, smaller banks and lenders were confident that they had serviced the majority of PPI compensation claims. But have they?

Why has a PPI compensation deadline been imposed?

The FCA were concerned about a number of things but at the top of the list was what they termed as 'customer apathy'.

The longer the PPI mis-selling saga was allowed to linger, the more customers would become apathetic. Thus, they decided to draw a line under it.

Some would argue that this was the only favour they did the banks;

  • A longer deadline- banks wanted a short deadline imposing but from the time the FCA announced the dealing date - 29.08.2019 - it was nearly three years away.
  • Marketing campaign- to accompany the deadline the FCA has insisted on a marketing campaign. Costing £42 million, the big banks are footing the bill.

Making a claim with Payment Protection Scotland

Here at Payment Protection Scotland we have so far helped thousands of people to successfully claim PPI compensation.

With a high rate of success, we have claimed back thousands of pounds in PPI compensation - isn't it your turn?

If you think you have a claim or would like some more information, call us - you are under no obligation to continue with a case so you have nothing to lose…