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Claiming Back Payment Protection on Loans

During the past six years an increasing number of payment protection insurance (PPI) claims have been filed against lenders that either failed to inform customers of the policy terms and conditions, or neglected mentioning the policy at all. With tens of thousands of UK residents claiming back payment protection on loans each year, the PPI claims process is becoming easier to facilitate for an experienced firm like Belmont Thornton, as most cases are ruled in favour of the borrower. Payment protection insurance, also referred to as loan protection insurance, is supposed to help borrowers cover repayments in the event that they are unable to do so in the event of accident, sickness or redundancy.

Payment Protection Insurance Case Reviews

Before a PPI reclaim can be honoured, several factors related to how the policy was sold need to be considered, including the applicant's eligibility, and whether they were adequately informed of policy terms, conditions, and costs. About 30% of the claims brought before the Financial Ombudsman Service (FOS) are related to borrowers claiming back payment protection on loans or credit cards. Approximately 60% of the cases reviewed pertained to various types of loans, while the remaining 40% pertained to mortgages and credit cards. As long as it can be proven that the PPI policy was mis-sold, either because you were given incomplete or incorrect information, you should be successful in claiming back payment protection on loans.

Why Am I Not Eligible for PPI Coverage?

The Financial Services Authority (FSA) has not only criticized lenders for failing to sell PPI policies properly, but also payment protection insurance companies for offering a product that does not provide a value worth its cost. Despite the fact that PPI policies can account for as much as 13-56%of the original loan amount, less than 15% of policyholders receive repayment assistance. Most people that consider claiming back payment protection on loans do so because they feel they were not specifically told how the insurance policy works, what type of coverage it provides, how much it costs, and how policy payments will be structured. While the repayment assistance scenarios that are eligible for coverage vary depending on the policy terms and conditions, most PPI policyholders will be denied benefits.

Why Are so Many PPI Policies Mis-Sold?

In 2009 there were more than 30,000 PPI claims cases reviewed by The Financial Ombudsman Services, and that figure rose in 2010 to nearly 50,000. In 2011 an expected 60,000 to 70,000 UK residents will be successful in claiming back payment protection on loans with the assistance of a professional PPI claim company like Belmont Thornton. The rampant mis-selling of PPI policies in the United Kingdom is caused by a combination of greed and misinformation. In fact, lenders often make more profit from the sale of payment protection policies than from the interest on the loans to which they are attached. Fortunately, since many financial authorities in the UK have begun recognizing PPI mis-selling as a widespread problem, claiming back payment protection on loans has become much easier with professional assistance.

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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.

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