A BBC survey indicates that PPI claimants receive different amounts of compensation. According to Personal Finance Expert Jonquil Lowe, banks interpret the regulatory guidelines for compensating consumers differently. Lowe said it was inevitable that the amount of redress you get will depend on the provider who sponsors your credit card.
A famous case from Renaissance Easy Claim showed how MBNA was only willing to pay out 50 per cent of the amount paid by high street banks for PPI recompense. Chief Executive Martin Banker highlighted that about 80 per cent of their MBNA claims were owed more than they were due.
Mark Pascoe, a client of REC, had £5800 due from MBNA. However, Baker said his client is owed about £13,000, about 50 per cent more from the original offer.
Official regulation requires credit card providers to put customers back in their early financial position if they never had any PPI. However, regulators allow credit card providers to establish their own methodology and calculating redress.
Most banks and lenders reconstruct their customer’s credit card history and remove PPI premiums, fees, charges and including any interest and premiums charged on those payments. With monthly amounts owing lower upon the removal of PPI charges borrowers will appear as having overpaid.