The calculation of compensation for a mis-sold loan in the UK depends on various factors related to your case. Compensation is intended to cover the financial losses or hardship you experienced due to the mis-selling. There are typically two elements to calculating the total compensation you may receive:
Refund of Charges and Interest:
You may be entitled to a refund of any charges or fees associated with the loan that were not properly disclosed or were applied unfairly. Additionally, you could receive a refund of the interest you paid on these charges.
Statutory Interest:
In addition to the refund of specific amounts, you may be entitled to statutory interest. This is meant to compensate you for the time you were without the money that you lost due to the mis-selling. The interest rate set by the Financial Ombudsman is currently 8%.
The below calculator gives an idea of how much interest you will potentially be refunded with a claim due to interest charges. Any compensation paid would include an extra statutory interest on your refunded payments, which is not included in the below calculation. The actual compensation you receive could be substantially more, especially with old loans.
Use this loan interest calculator to give you a quick estimate of how much compensation you may be eligible to claim from a mis-sold loan. The calculator is intended as a guide only and is not a confirmation that a refund is
We are a claims management company that can help establish and process claims on behalf of consumers to recover compensation against various types of lenders. You do not need to use a claims management company to make your complaint to your lender or the Financial Ombudsman for free.