SAIM2110 - Interest: interest and PPI
Compensation for missold PPI is calculated in a number of ways. It can include an interest element. The links below are to examples based on the most common scenarios. The examples describe how the compensation is calculated and which elements of the compensation are taxable. The examples do not cover every situation. If a customer has received PPI compensation that does not fall into one of these examples it may nevertheless still be possible to identify the 8% interest element in the compensation calculation. If this is not possible then contact the BAI Financial Products Team.
| Single Premium | Facts | Go to |
|---|---|---|
| - | Loan and PPI still running | SAIM2115 |
| - | Loan repaid early and PPI cancelled | SAIM2120 |
| - | Loan and PPI run full term | SAIM2125 |
| - | Loan still in existence but PPI changed | SAIM2130 |
| Monthly Premium | Facts | Go to |
|---|---|---|
| - | Credit card and PPI still running | SAIM2135 |
| - | Credit card still being used but PPI cancelled | SAIM2140 |
| - | Credit card closed and PPI cancelled | SAIM2145 |