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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.

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