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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.


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