Tag Archives: PPI

How Accurate is a PPI Claim Calculator?

With a final deadline implemented recently, a fresh wave of people who have yet to claim a PPI refund has started looking into the claims process. One thing that many people want to know at the outset is how much their claim could be worth, and this may well affect how you proceed with your claim. PPI claim calculators promise an easy way to estimate the value of your refund before you speak to a single person about making a claim, but how far can you trust them to give you an accurate figure?

Estimating Your Refund With an Online Calculator

A PPI claim calculator certainly offers one advantage, in that it allows you to get an idea of the value of your claim before you take any further steps and before you speak to a human being about it. This eliminates the danger that you might feel pressured, whether the person you are speaking to intends it or not, to take your claim forward with a particular company because you have contacted them for an estimate. For many people, this alone is a good reason to use a PPI calculator as long as it is not so inaccurate as to be useless.

However, this does not actually do anything to answer the question of how accurate these calculators are. Well individual tools may vary, but on the whole they are certainly not inaccurate enough to make them useless. There is a fixed process for calculating the value of a PPI refund so, and online PPI calculators use this same formula. As long as you have accurate information to put into them, such as the value of the missold policy and relevant dates, the calculator should output a reasonably good indication of what you are due.

The Limitations of a PPI Calculator

Even so, you should certainly bear in mind that PPI Calculators do have their limitations. Some kinds of policy are more complicated to calculate than others, and to make the calculators quicker, easier, and more user-friendly there might be some level of simplification used. On top of this, PPI calculators simply lack the human touch and the expertise that is needed to consider the nuances and subtleties of many individual cases.

An online calculator can be a very useful tool and can give you a good indication of what you could be owed. At the end of the day, however, the figure should not be taken as gospel and talking to a human being will always give you a more accurate estimate. If you intend to make your claim through a PPI claims company, the next step is to select a claims handler and speak to them about the value of your refund.

What PPI Claims Statistics Reveal?

The PPI scandal dates back to late 1990’s when it was first reported that PPI  was a poor value product. PPI or payment protection insurance was introduced as a product that would cover the monthly repayments if a person holding the PPI policy fell ill or lost their job. For most people, it sounded an attractive proposition and the product was a hit. The PPI was generally sold alongside loans or credit cards. Many people even led to believe that the credit application was more likely to accepted if the person had a PPI. This was one on the primary methods by which PPI was mis-sold and there were many other loopholes which allowed this to happen.

Most banks and financial institutions that sold PPI did not share the complete and accurate details regarding PPI as they earned a huge profit by mis-selling the product. The figures reveal that banks and financial institutions had a profit margin of almost 80 % if they mis-sold the product. The PPI claims statistics also reveal the fact that since most of the policies were purchased alongside loans, most people ended up paying a lot of money and that the PPI turned out to be a very expensive product.

However, the statistics also reveal that millions of customers have now successfully claimed back their mis-sold PPI premiums. Of the 4.5 million people who have made claims, 2.5 million have been able to get the settlement of the claim. The statistics also reveal the fact that the biggest scandal is also turning out to be an economy stimulus package as it is not only helping people get money but is also generating a lot of new jobs. It is known from statistics that around 6000 extra people have been hired by UK banks and financial institutions to handle the PPI claims.

When the story first broke, back in 2009, it was estimated that payouts for mis-sold PPI could reach £4.5billion. However, 5yrs on, that sum has more than quadrupled with major UK banks now having set aside over £22billion, and with claims for compensation still incoming that figure could rise further still!

To find out more about mis-sold PPI and how to recover your money, visit http://www.oraclelegal.co.uk/ppi-claims