Unless you’ve been living under a rock for the last couple of years you’ll be well aware of the opportunity to claim back your PPI – you could be owed thousands!
So, I decided to check if I was owed any money. The process is simple and free or you can pay someone to do the hardwork for you. I followed the process here on MSE and found it very easy to do.
The payout is quite remarkable. Every penny you’ve paid out in PPI insurance is paid back to you with 8% interest (compounded) and TAX-FREE to boot! If you paid £10 a month 20 years ago for 10 years you would get about £4,700 back – on £1200 paid in, an almost 300% uplift. That’s probably better than investing in the FTSE100 over the same period.
That money can then be invested but more commonly was just used to switch from PPI to PCP – getting that new car that they deserve (and can’t really afford).
So what’s new car is outside the Gentleman’s Family house?
Unfortunately, I was not wise enough to invest in PPI back in the day and I have never paid a penny in PPI. It has always been clear to me and many others that PPI was a rip-off; like so many insurance products, it is bad value for money and often not needed entirely or not suited for use.
So I got nothing in return – a big fat zero. That’s the price of prudence and I’ll still have to hear the ads on the radio!