Belmont Thornton Logo
Claim Back Loan Insurance

Cancelling Payment Protection Insurance

Aspiring to purchase your dream home comes with a little bit of financial planning and associated stress. So when you're given the opportunity to receive an ideal home loan that will allow you to purchase a seemingly perfect house, it can be easy to accept higher interest rates, hidden fees, and overall unfair terms and conditions. Many subprime borrowers are becoming victim to insurance schemes in which lenders bundle a payment protection insurance (PPI) policy with the value of the loan to raise interest earned and possibly earn a commission from the PPI company. Many borrowers never even realized that they were ineligible for the policy, until they were unable to make repayments and coverage was not provided. Sadly, this is the case for more than 85% of PPI policyholders, which is why financial authorities like the FSA (Financial Services Authority) have been cancelling payment protection policies.

Will Canceling Payment Protection Insurance Work?

Unfortunately, it may not be possible to cancel payment protection insurance, as in most cases it is paid for as a one-time premium bundled in with the loan contract. However, in some cases the unsuspecting borrower will have unknowingly paid for months worth of PPI fees, and would be forced to continue to do so without the help of PPI claim company. Any lender that mis sold PPI policies can be held accountable, and according to UK law must provide compensation to the borrower that they deceived. Cancelling payment protection insurance is a difficult process that could result in loan defaults without professional assistance.

How Common Are Mis Sold Payment Protection Insurance Policies?

With more than 50,000 people cancelling mis sold payment protection policies last year alone, it is safe to say that the majority of PPI policies were mis-sold. Mis-selling is defined as deceiving a borrower into believing that PPI is mandatory, beneficial, or directly related to loan approval. Lenders may also fail to disclose important information about the terms and conditions of the policy, or completely neglect to mention it at all. Fortunately, even large financial institutions have been fined millions of pounds for this unfair practice, and anyone that was mis-sold a PPI policy during the last six years is entitled to a full refund.

Can I Reclaim PPI Payments?

Once you've considered cancelling payment protection, you've probably also asked yourself if you'll be able to reclaim all those unnecessary payments that you made towards the policy during the loan duration, or whether you'll be able to receive that one-time premium fee charged upon loan signing within one lump sum. Luckily, with the help of a PPI claim specialist your lender will not only be forced to refund any money spent on the PPI policy, they'll also have to renegotiate the terms of your loan contract to reflect a lesser overall loan amount. The average PPI claim for a professional PPI claim company after cancelling payment protection insurance and reclaiming all payments ranges from £2000 to £3000 on £10,000 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