Belmont Thornton Logo
Claim Back Loan Insurance

Banks Payment Protection

With the world in economic uncertainty banks are constantly safeguarding their operations by minimizing risk and choosing to deal with borrowers that have exceptional credit. However, some lenders make exceptions for subprime borrowers, under the conditions that the interest rates are higher. Some borrowers may leap at the chance of being given credit, but should be aware of any hidden charges in the loan. One of the most common hidden charges often added on to a business loan, mortgage loan, or credit card bill is payment protection insurance (PPI). PPI is a type of policy that offers to make repayments on a loan or credit card when a borrower is unable to work or make repayments due to unforeseen circumstances. However, a very small percentage of PPI claims are actually honored with some surveys putting the figure at just 15% for loan PPI.

Canceling PPI Policies

Canceling a PPI policy is as simple as contacting the lender, inquiring about the purpose of the policy, and then requesting that it be terminated. However, if you've already become victim to a situation that requires you to file a PPI claim, it is unlikely that you will receive benefits from the policy. Instead, you'll need to seek monetary compensation for all of the payments you've made towards the banks payment protection policy. The cost of a PPI policy for a mortgage loan typically ranges from 13-25%, which means payment protection on a £200,000 mortgage may cost between £26,000 and £52,000. This would be the amount you may be entitled to PPI reclaim.

Understanding Banks and PPI Policies

Given the fact thatin the past PPI policies were sometimes automatically bundled into monthly loan repayment costs, it may seem as if the PPI policy is actually an integrated part of the banks payment protection system. In fact, the bank, financial institution, or lender responsible for mis-selling the PPI policy is actually receiving a commission from a third-party insurance company for each policy sold. As more consumers become knowledgeable, fewer borrowers are enrolling in their banks payment protection policies, and some are even filing claims against financial institutions that charged them for a policy for which they were ineligible, or unaware of.

How to Avoid Your Banks Payment Protection Policy

One of the reasons why a banks payment protection policy is so difficult to avoid is that it is often referred to by various terms, including but not limited to loan coverage and repayment insurance. In fact, many banks will choose their own term for this type of policy, often using phrases that make it sound more important or necessary, such as loan protection. Sadly, PPI policies offer very little protection in regards to providing coverage for repayments, as most borrowers are ineligible for benefits. The easiest way to avoid your banks payment protection policy is to be upfront about it and inquire about any possible hidden charges or similar included policies before applying for a loan.

Tell a Friend
blog comments powered by Disqus

Enquiry Form

First Name 
Last Name 
Mobile Phone
Home Phone
Address Line 1 
Post Code 
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 number 18273

Belmont Thornton Limited is incorporated in England and Wales, Company number 6621233, whose head office at Unit B11, 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