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Claim Bank Charges Letter

Receiving an expeditious response from a bank or lender after submitting a complaint letter is a very unlikely situation, which is why many account holders choose to contact the bank via phone or e-mail before sending a formal complaint. If you've tried sending a complaint letter regarding your payment protection insurance (PPI) policy, there is a good chance that your requests have gone ignored. A lot of banks seldom mention their PPI policies, even though they may account for as much as 15 to 50% of the total monthly repayment costs. In other words, a 10-year, £5000 loan with 7% interest applied should theoretically have monthly repayments of about £50. However, a lender or bank may attempt to give you a loan of the same specifications with monthly cost of £75, simply because it is "fully insured". If you've been sold a PPI policy by a bank that used this type of persuasive language to convince you into applying for a specific "insured" loan, then you may want to hire a PPI claim company to submit a claim bank charges letter on your behalf.

What Constitutes a Mis-Sold PPI Policy?

When a bank uses lenient and inaccurate phrases (i.e. "fully secure" or "insured") to describe a PPI policy this is known as mis-selling. Lenders are not allowed to convince a borrower that a payment protection insurance policy is mandatory for loan approval, or that it will affect the amount of the loan in any way. Lenders are also obligated to disclose the full terms and conditions of the policy, including the impact it will have on monthly repayment costs. If a lender fails to fulfil these obligatory duties they'll be subject to fines and could be forced to offer a full PPI refund if any payment protection claims are filed against them. A professionally worded claim bank charges letter submitted by a PPI attorney on your behalf may be all that is needed to begin reclaiming PPI payments today.

The Effectiveness of a Claim Bank Charges Letter

Although submitting a claim bank charges letter to your lender directly may attract enough attention for them to at least explain the necessity of the policy, it most likely will not cause them to renegotiate loan terms, and it most certainly will not cause them to offer a full PPI refund. However, a claim bank charges letter written by a professional PPI attorney would carry the authority needed to force a lender into action. Individuals that represent themselves in the payment protection claim case are far less likely to receive full compensation, and will probably spend weeks accomplishing tasks that a qualified PPI attorney could facilitate within just a couple of days.

Should You Contact the Lender before Consulting with a PPI Specialist?

While it may be best to at least inquire about the purpose of the PPI policy and kindly request some sort of compensation, the chances of having this request honoured by your lender are comparatively minuscule. In fact, some spiteful lenders will attempt to damage a borrower's credit score by filing negative items on their credit report if they complain or attempt to take action regarding the PPI policy. A claim bank charges letter sent to your lender may just motivate them to prepare legal defence in the event that you file a claim against them. Since you'll most likely have to utilize the assistance of a PPI claim company, it may be wise to simply take action without warning the lender and giving them the opportunity to prepare for their PPI claim rebuttal.


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Belmont Thornton Limited is incorporated in England and Wales, Company number 6621233, whose head office at Unit B16, Kestrel Court, Harbour Road, Portishead, Bristol, BS20 7AN and registered office at Harwood House, 43 Harwood Road, London, SW6 4QP.

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