How do I know whether the offer is fair?

PPI refunds can vary wildly, depending on what the product was, how long you had it and how long ago it was. 

The broad definition of a fair offer is to put you back into the financial position that you would have been in if you hadn't had the PPI. This generally consists of everything you paid for the PPI, including any interest, and an additional 8% statutory interest. This last part is to compensate you for the fact that you have not had use of the money all this time.

The 8% interest is classed as income, and is therefore chargeable for income tax. The rest of the refund is not liable for tax.

There are some additional considerations that will affect some people. Firstly, if you ever had a successful claim on the PPI, this amount will be deducted from your refund. Secondly, if you fell behind on payments as a result of being charged PPI and were charged a fee by your lender as a result, these will be included in your refund.

Our expert claim handlers assess all offers to ensure they are fair in line with the rules laid down by the financial conduct authority. If we deem your offer to be unfair we will let you know the option to escalate this to the Financial Ombudsman Service.  

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