To address the confusion that comes with these two concepts, it’s time to clarify what the two actually are. About 5 in 10 cases find that they want to refund their direct redress or PPI alone.
Here are a few things to know about the two to help you and your claims representative achieve your goals quickly.
Direct redress is all about getting your interest rates back from financing the PPI affected. It can be multiple financial accounts affected by the PPI.
About thirty years ago, PPI was sold alongside loans, mortgages and credit cards. Some of these single-premium PPI increased in value as the financing itself increased its interest rate. PPI premiums increase when the consumer becomes a high-risk client. However, this returns to its original value when the consumer becomes a low-risk client once again.
The increased PPI premium needs to be calculated and estimated before being refunded to consumers.
PPI refunds are simple if they have a fixed premium associated with them. If your insurance policy only covers one of the three aspects it includes (accident, sickness or unemployment), then you can have a flat-rate insurance.
Claiming fixed-premium PPI refunds are easier as you would only need to prove you were mis-sold PPI. There will be no need to recalculate your interest rates.