How to assess a PPI settlement offer.

[diadem01]

Would anyone know how to assess the probable return on a PPI claim so that when (if) an offer is eventually made, I shall be in a position to decide if it is fair. The amount of insurance paid was £1125 to cover a loan of £15000 and I was told that I had to buy the insurance or no loan. In addition, my house was valued as security. No claim was ever made and no refund was offered when the loan was repaid (3 years early).

It was a small business loan and was paid off in November 1998 so in effect, the bank charged £1125 plus interest on that and I think I should also be due interest on the whole amount for the 14 years since. But maybe I'm wrong.

Any knowledgeable advice would be very much appreciated.

[factor-fiction]

It will set out the calculation. I think they have to set them out in a certain way and add on interest at a set rate. Note that the interest will be taxable. If you look on something like the MSE website you may find a template for the settlement calculation

[factor-fiction]

It sounds a very old loan though. You say it was paid off in 1998? When did you stop paying the PPI?

[diadem01]

Thanks for your interest, factor30. Not really odd, perhaps ill chosen.
It was a small business venture which turned out successful but when I paid off the balance some three years early, they refused to make any kind of settlement on the insurance factor. As a result it has always rankled and I closed my personal account with the bank as 'punishment'.
I have recently made a claim and it has been accepted, though I am still waiting for the detail. Yes, it is set out, I understand, but knowing their ways of working I just want to get some guidance as to what would be fair and how it would be calculated.

Experience tells me that what is fair and what they will present me with could be two entirely different things.

[factor-fiction]

Hi- I said OLD not ODD. If I understand it you paid the loan off in 1998 and had to carry on paying the PPI for the next 14 years

[diadem01]

Sorry. I'm 76; I don't understand the word old.

But no, the loan and the PPI was repaid in 1998. The 14 years (maybe more, technically) is the time they have had use of my ill taken money.

Thanks for your continued interest.