Claim Back Insurance on Loans
Reading through all of the terms and conditions within a loan contract can be a lengthy and challenging process, which is why many borrowers skip through the fine print and jump at any opportunity to receive approval for a loan. This is especially true for subprime borrowers that are in search of business or home loans, as these customers tend to be more desperate for financial assistance. Lenders and financial institutions are known for recognizing and exploiting the desperation of clients by charging unfair fees and exorbitant interest rates. In addition, many lenders are mis-selling PPI (payment protection insurance) policies to earn commissions and add to the overall loan amount.
Facts about PPI Claims
During the last quarter of 2009 alone there were nearly 30,000 PPI claims filed in the United Kingdom, and hundreds of thousands of citizens have successfully reclaimed funds spent on a PPI policy during the past six years. In 2006 a thorough investigation was conducted by several financial authorities which revealed the extent and nature of PPI mis-selling in the UK. This resulted in an influx of lawsuits against dishonest lenders, credit card companies, and banks that mis-sold PPI knowingly. As such, many attorneys have begun specializing in helping victimized borrowers claim back insurance on loans.
What Is Mis-Sold PPI?
Mis-sold payment protection insurance is classified as any policy that is sold to an individual who is ineligible for, or inadequately informed of, the policy and its terms, conditions, cost, or existence. A policy is also ruled as mis-sold if the borrower was convinced that the policy was mandatory or somehow necessary for loan approval, or that it would be beneficial in situations that are not covered by the policy. For example, if you miss work and you're over the age of 65, cannot work due to back problems, stress, emotional issues, or pre-existing medical conditions, or already had a policy similar to PPI with another insurance company, you'd be deemed ineligible for coverage and would have no choice but to file a PPI reclaim.
How Can I Claim Back Insurance on Loans?
To claim back insurance on loans you'll need to file a claim against the lender or bank that Mis-sold you the PPI policy, not the insurance company itself. One of the reasons why PPI companies are reluctant to approve a large percentage of policyholders for coverage is that many people attempt to submit frivolous claims and claim back insurance on loans fraudulently. Thus, a payment protection insurance company is obligated to ensure that assistance is only given to policyholders that are truly eligible. However, lenders are also obligated to ensure that the clients they sell policies to are truly eligible and fully informed of the policy terms and conditions. If a lender fails to comply with these guidelines, the borrower will be able to claim back insurance on loans that included a mis-sold PPI policy with the assistance of a PPI claim company.
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