Belmont Thornton Logo
Claim Back Loan Insurance

Bank Loan PPI

With interest being charged on small bank loans reaching all-time highs, and increasing pressure from financial authorities for banks to reduce unfair fees, it is not surprising that many lenders are resorting to mis-selling payment protection insurance policies. PPI is a type of insurance that covers loan repayments in the event that the policyholder/borrower is unable to make payments due to injury, accident, or unemployment. While this controversial type of insurance may seem essential to some and counterintuitive to others, it is actually one of the most commonly mis-sold insurance policies in the financial sector. Despite the fact that hundreds of thousands of people are mis-sold PPI policies each year, only tens of thousands actually receive PPI refunds.

Why Are so Many PPI Refunds Issued?

Only a small percentage of PPI claims are actually honored by the insurance company, as this type of coverage is prone to fraud because it presents the opportunity for dishonest borrowers to file exuberant claims. In other words, if the PPI insurance company honored every claim, they would go out of business within the first year due to the overwhelming amount of claims. Thus, PPI insurance policies carry strict eligibility requirements, and lenders are responsible for knowing these requirements and only enrolling borrowers that qualify. When a lender enrolls a borrower despite their ineligibility or awareness, this is known as PPI mis-selling. If a borrower has been paying for PPI policy all along even though it would be impossible for them to file a claim against such a policy, then they are entitled to a complete PPI refund.

Bank PPI vs. Private Lender PPI

Contrary to popular belief, major financial institutions are as much a culprit in mis-selling PPI has private lenders, and due to their corporate leverage, they participate in this shady practice even more shamelessly than smaller lenders. In addition, bank PPI policies are usually well hidden and referred to by vague and seemingly important terms such as policy coverage, payment insurance, or loan coverage. While larger financial institutions are more likely to hide bank PPI charges on a monthly statement under a different name, smaller lenders are more likely to openly persuade or deceive a borrower into enrolling for a PPI policy under the premise that it will increase their likelihood of approval or provide additional protection.

How to Reclaim Bank Loan PPI

Reclaiming all of the money spent on unnecessary bank loan PPI charges is relatively simple when aided by the professional assistance of a PPI claims company. A PPI claims specialist will provide a free consultation and only take your case if there is a high probability of you receiving compensation. In fact, a good PPI claims company will not charge a borrower at all unless they facilitate a victorious PPI claims case. When contacting a PPI specialist it is important to include details about how you were sold the policy, whether you were notified, why you believe you were ineligible for the bank loan PPI policy, and what type of compensation you are seeking.


Tell a Friend
blog comments powered by Disqus

Enquiry Form

First Name 
Last Name 
Mobile Phone
Home Phone
Address Line 1 
Town
County
Post Code 
Email 
Circumstances
Claim Back Mis-Sold PPI Button

Why Choose Us?

  • TickAbsolutely No Upfront Costs. No Win No Fee*
  • TickSpecialist Claims Team Always On Hand To Answer Your Questions
  • TickQuick, Easy And Simple Process
  • TickU.K. Based Call Center
  • TickGuaranteed To Start Your Claim In 24 Hours

Loan claim: Building societies warn of house price bubble

The Building Societies Association (BSA) is the latest to warn about the potential house price bubble that could arise f...

Bank claim: Lloyds raised concerns on Co-op finances

Lloyds Banking Group was aware that the financial position of the Co-Operative bank was unstable, said Lloyds chief exec...

Loan claim: first time buyers locked out for a decade

First time buyers will have to save up their deposit on a house for more than ten years, according to research from the ...

Bank charges: Commission tackles issue of RBS

The weak position of the Royal Bank of Scotland (RBS) is damaging to the UK economy, according to the Parliamentary Comm...

Bank charges: Report says customers and taxpayers were failed

Customers and taxpayers have been failed by the financial sector, according to the final report from the Parliamentary C...

Belmont Thornton Limited is regulated by the Claims Management Regulator in respect of regulated claims management activities; our registration is recorded on the website www.gov.uk/moj/cmr number 18273

Belmont Thornton Limited is incorporated in England and Wales, Company number 6621233, whose head office at Unit B16, Kestrel Court, Harbour Road, Portishead, Bristol, BS20 7AN and registered office at Harwood House, 43 Harwood Road, London, SW6 4QP.

Belmont Thornton Limited is registered with the Information Commissioners Office. Registration number Z1728023.

Please note that calls may be monitored for the purposes of staff training.

* Belmont Thornton operates on a "No Win No Fee" basis. This means that there are no upfront costs to pay. Our fee only becomes payable on a successful outcome of a claim. A cancellation fee is payable if you decide that having instructed Belmont Thornton to act on your behalf, and after 14 days of signing your Letter of Authority, you do not wish to continue pursuing your claim with us. The cancellation fee is the reasonable costs incurred for the work undertaken. Please see our terms of engagement.

By using our web-site, you agree that we can place the types of cookies described in our privacy policy on your device.Hide