How are PPI claims calculated?
- Posted on
In Part 1 of this article we looked at how our PPI claims calculated. In this part we will take a look at the process that a provider goes through in order to come up with their payment rates and what the actual benefits are of having such cover. In short, the basic premise upon which PPI is based is that you will have to borrow money against your own credit in order to make repayments on your PPI. The loan is taken as security for the amount that you wish to pay. The purpose is to ensure that if you should default on the loan, that your creditors will be able to get their money.
How are PPI claims calculated? Once a creditor takes possession of the loan and attaches it to your account, they will decide whether or not you are eligible for PPI. If you are eligible, they will inform you and then work with your financial institution to get your loan processed. If you are not eligible for PPI, they can add the additional element of compensatory interest onto your loan amount and get you to pay it off in full.
What are the different elements involved in how our PPI claims calculated? The claim process is a two step process. Firstly, you must make an application for a loan. Once you do so and you receive approval for the amount you wish to borrow then you will need to either make a claim for the amount you borrowed or submit a claim for compensation against the company who sold you the loan.
How are PPI claims processed by the Financial Services Authority? Most FSA members will allow you to submit a claim if you have been mis-sold a PPI loan. However, there is normally a limit to how much compensation you can make a claim for and how long after the sale of the loan you can make another claim.
What should you do if you make a claim for a PPI loan payment error? The first thing to do is contact your loan provider. They will have to investigate the claim and if they think that it is valid, they will remove the incorrect amount from your loan. This is the best way to recover your money – but it is also the hardest way. After making several phone calls and writing letters to the provider and several different banks, the claims will still be rejected.
How are PPI claims processed by the Financial Services Authority? The FSA is fully committed to helping consumers who have had financial problems. The FSA’s role is to protect the consumer from any type of financial scam or fraud. To report scams, you need to visit the fraud website – where you will find a guide on how to report scams. The Fraud Action UK website also has information on how to deal with financial firms that you have received claims from. You can contact them online through their 24 hour helpline or by email.
Who determines how are PPI claims calculated? The Financial Services Authority does not receive a fee for its work. All it receives is part of the billions of pounds it makes from fees paid by loan providers every year. It costs the FSA nothing to investigate claims made against financial companies. However, it does get involved in the process of deciding which loans and mortgage products are legitimate and which ones are fraudulent. After publishing its investigations into the cost of PPI, the FSA publishes its findings on its website.
Why does the FSA decide how are PPI claims calculated? The main reason is to save customers the cost of paying out too much in insurance premiums. If a customer has had an unanticipated problem with a product since it was purchased, the financial firm has to prove that it was the cause of the problem and that the refund would make it worthwhile for the customer to make a new account with the lender. This process can take many months, making it very difficult for loan providers to keep up with the huge demand from customers who have had problems with their PPI.