PPI Calculator

Category: Lending & Insurance
- April 12, 2025
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Calculate potential Payment Protection Insurance (PPI) refund claims

This calculator provides an estimate of potential PPI refunds based on your loan or credit details. Actual refund amounts may vary depending on individual circumstances and lender policies.

Loan/Credit Details

Ā£

PPI Details

Ā£
%

Select if any of these apply:

  • You were told PPI was mandatory
  • PPI was added without your knowledge
  • You were self-employed, unemployed or retired when sold PPI
  • You had pre-existing medical conditions

What is Payment Protection Insurance (PPI)?

Payment Protection Insurance (PPI) was designed to cover repayments on loans, credit cards, mortgages, and other credit agreements if the borrower was unable to make payments due to illness, accident, unemployment, or death.

The PPI Scandal

PPI became the subject of one of the UK's largest financial scandals because it was widely mis-sold to customers who:

  • Were told PPI was mandatory when it wasn't
  • Had PPI added without their knowledge or consent
  • Were sold policies they could never claim on (e.g., self-employed people sold unemployment cover)
  • Were not informed about significant exclusions
  • Had pre-existing medical conditions that would make them ineligible to claim

This led to a massive compensation scheme, with banks and lenders repaying billions in refunds to consumers who were mis-sold policies.

Making PPI Claims

While the FCA's official deadline for PPI claims was August 29, 2019, there are still some routes available for making claims:

Plevin Ruling

Following the "Plevin vs Paragon Personal Finance Ltd" case, you may be able to claim if more than 50% of your PPI premium was paid as commission to the lender and you weren't told about this. This is still valid for many consumers.

Court Claims

Some consumers may still be able to pursue claims through the court system, although this typically requires legal representation.

What You'll Need to Claim

  • Details of your loan or credit agreement (account numbers, lender names)
  • Approximate dates of when the policy was taken out
  • Evidence of mis-selling (if available)
  • Details of how the policy was sold to you

Important Note

You do not need to use a claims management company to make a PPI claim. While they can handle the process for you, they typically charge 20-30% of any refund received. You can claim directly with your lender at no cost.

PPI Claim Eligibility

You may be eligible for a PPI refund if any of the following apply:

Policy Issues

  • You were told PPI was compulsory
  • PPI was added without your knowledge
  • You weren't told about significant exclusions
  • The policy was unsuitable for your circumstances

Personal Circumstances

  • You were self-employed but sold unemployment cover
  • You were retired but sold income protection
  • You had pre-existing medical conditions not disclosed
  • You worked on a temporary or part-time contract but weren't told you'd have limited cover

Commission Issues (Plevin)

  • More than 50% of your premium was commission
  • You weren't informed about high commission rates
  • The relationship between the lender and insurer wasn't disclosed

Other Factors

  • The policy benefits were misrepresented
  • The policy was automatically renewed without your knowledge
  • You were pressured into buying PPI
  • The policy term was longer than the loan term

Cashing in on Clarity: Your Guide to the PPI Calculator

Ever wonder if you were charged for something you didnā€™t really need when you took out a loan or credit card? Thatā€™s where the PPI Calculator comes in handy. Itā€™s like a detective for your finances, helping you figure out if you might be owed money from something called Payment Protection Insurance (PPI). Lots of people in the UK were sold PPI without even knowing itā€”or in ways that werenā€™t quite fair.

This calculator isnā€™t here to give you any complicated financial speeches. Itā€™s here to do one simple thing: give you a rough idea of what kind of refund you might be able to get based on your loan details. Simple, fast, and helpful.

The Tool That Talks Numbers

Hereā€™s what the PPI Calculator can do for you:

  • Estimate how much you could claim back from mis-sold PPI
  • Break down your possible refund into parts like premium, interest, and tax
  • Help you understand how long you had the loan and how that affects your refund
  • Take into account whether you paid off the loan early, are still paying, or had trouble keeping up

It also checks if the PPI was added in a way that wasnā€™t fairā€”like if you were told it was required, or didnā€™t know it was even added. Handy, right?

Why This Calculator Makes Life Easier

This isn't just for people who love math. The PPI Calculator is great for everyday use, especially if youā€™ve ever had:

  • A credit card, car loan, store card, or mortgage
  • A feeling that something was off about the charges on your loan
  • Trouble remembering what your loan details were, but still want a general idea of your claim

Example 1:
Letā€™s say you borrowed Ā£5,000 for a car in 2010 and finished paying it off a few years ago. You think PPI might have been added. You punch in your info, and boomā€”you get a quick estimate of what you might be owed.

Example 2:
You're doing a school project about financial fairness. This tool helps you learn how refunds work in real-life situations, not just in textbooks.

Quick Steps to Your Estimate

Using the PPI Calculator is super easy. Just follow these steps:

  1. Choose your loan type ā€“ Is it a credit card, car finance, personal loan, etc.?
  2. Enter the amount you borrowed ā€“ Try to be as accurate as you can.
  3. Select the start date ā€“ Even an approximate year helps.
  4. Add how long the loan was for ā€“ You can choose months or years.
  5. Enter the PPI premium ā€“ If you donā€™t know, leave it blank. The calculator can guess based on averages.
  6. Select your payment status ā€“ Have you paid it off, settled early, or still paying?
  7. Check the interest rate ā€“ It defaults to 8%, which is a good general number.
  8. Tick the mis-sold box ā€“ If any signs of mis-selling apply to you.

Then just hit ā€œCalculate Potential Refundā€ and the results will pop up with a neat breakdown.

Crunching the Final Numbers

At the end of the day, the PPI Calculator isnā€™t trying to give you a final refund amount. Thatā€™s up to your lender or a claims specialist. But it gives you a ballpark figure to start from. Think of it like using a weather appā€”it doesnā€™t control the rain, but it tells you if you should grab an umbrella.

With just a few clicks, you can figure out if your past loan might be hiding a small payday. Whether youā€™re curious, cautious, or just clearing out your old paperwork, this little tool can help bring some clarity to your cash.

And thatā€™s an equation we can all get behind.