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Claim Back Loan Insurance

PPI Calculation

The prospect of claiming back PPI or any kind of  bank charges can be daunting. In order to progress your claim as quickly as possible and to, hopefully, secure the best outcome it is wise to be well prepared to action your complaint and deal with any responses from your lender. Firstly, you should know your rights and on what legal grounds customers have the right to complain. Secondly, you should be clear on the specific reasons you, personally, have the right to make a complaint and, lastly, you should have a good idea of how much money you may be entitled to reclaim.

How was your policy mis-sold to you?

Before you begin Reclaiming PPI and making your PPI calculation you should first make sure you are clear on the grounds under which your cover was mis-sold. There are a number of different ways in which a policy may be mis-sold. Examples include where a policy is added without a customers consent and where a customer is given incorrect or misleading information regarding their policy E.G that taking out cover will improve their chances of being given or guarantee their loan. Other common methods of mis-selling include policyholders being sold a policy they don't really need or cannot use. Examples here include customers who are in full time education or retired - why would someone not in employment need involuntary unemployment cover?

Your PPI Calculation

Before filing your claim it is worthwhile calculating approximately how much you have paid out for payment protection cover. PPI is added differently depending on the financial product to which it is attached. On loans it is ordinarily calculated as a percentage of the loan amount and is generally between 13-25%. For example, if you borrow £1,000 you may pay between £130 and £250 for the cover. The cost of the insurance will then normally be divided over the life of the loan and incur interest at the same rate as the initial borrowing. The PPI calculation for credit cards is generally worked out differently. Card PPI is added on a monthly basis and is linked to the outstanding balance. In general, it is charged at around 79p per £100 outstanding. This means if you owe £1,000 on your card you may pay £7.90 per month for the cover.

It is important to establish the grounds for your complaint and complete a basis PPI calculation before submitting your claim as it will help you be prepared for any response from your lender and judge whether any settlement offer is fair. To get help with your clai, call 0207 471 2000.


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Belmont Thornton Limited is regulated by the Claims Management Regulator in respect of regulated claims management activities; our registration is recorded on the website www.gov.uk/moj/cmr number 18273

Belmont Thornton Limited is incorporated in England and Wales, Company number 6621233, whose head office at Unit 16, Elysium Gate, 126 New Kings Road, London, SW6 4LZ and registered office at Harwood House, 43 Harwood Road, London, SW6 4QP.

Belmont Thornton Limited is registered with the Information Commissioners Office. Registration number Z1728023.

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* Belmont Thornton operates on a "No Win No Fee" basis. This means that there are no upfront costs to pay. Our fee only becomes payable on a successful outcome of a claim. A cancellation fee is payable if you decide that having instructed Belmont Thornton to act on your behalf, and after 14 days of signing your Letter of Authority, you do not wish to continue pursuing your claim with us. The cancellation fee is the reasonable costs incurred for the work undertaken. Please see our terms of engagement.

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