We’ve had quite a few questions lately in relation to the difference between direct redress and a PPI refund.
Here we will outline the differences between the two, in order to help you claim back what is owed to you.
Direct redress is essentially getting your interest rates back from the PPI policy. It was nearly thirty years ago when PPI first started being sold alongside loans, mortgages and credit cards. Some of these single-premium PPI policies increased massively in value as the financing forced up the interest rates.
This is because PPI premiums increase when the holder is deemed a high-risk client. This means then that the PPI premium needs to be calculated and estimated before it is refunded.
Refunds are really simple if they have a fixed premium associated with them. PPI refunds are simple if they have a fixed premium associated to them. If the policy only covers one out of three aspects such as accident, sickness or unemployment, then you 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.