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Claiming Back PPI Insurance

The term "loan insurance" usually invokes thoughts of security and confidence in the minds of borrowers, with many feeling confident the cover will protect them if they become sick, have an accident or are made redundant.Payment protection insurance (PPI) is supposed to provide a backup source of funding for repayments if a borrower or cardholder is unable to work for various reasons. However, studies conducted by the Financial Services Authority (FSA) revealed that only 5% of the PPI policies reviewed were actually sold legitimately, with the other 95% being mis-sold due to dishonest persuasion and/or misinformation. Fortunately, tens of thousands of UK residents are reclaiming PPI payments each year with the assistance of professional firms like Belmont Thornton, Belmont Thornton.

Understanding the Widespread Mis-Selling of PPI

Some mis-sold PPI pothousands of UK residents are licies are paid for by a one-time premium charged upon loan signing, while others are paid for gradually in the form of monthly bank charges. If the PPI is paid for with a one-time premium, the cost is usually covered by the lender, who then adds the price of the policy to the overall loan amount so that it will be repaid gradually along with the original loan amount. Borrowers that were unknowingly sold a PPI policy, which was paid for by a one-time fee funded by the lender, have the highest chances of claiming back PPI insurance successfully. Even if the lender used misinformation to persuade you into purchasing the policy willingly, you're still eligible for a PPI refund.

The Excessive Cost of PPI Policies

The cost of a PPI policy can be as much as 13%-56% of the total loan amount. In addition, the claims ratio for PPI policies is 15%. This means that for every pound spent on a PPI premium, payment protection insurance companies pay out only £0.15.Given such figures it is evident why so many UK residents are claiming PPI insurance payments back with the help of Belmont Thornton. When the claims ratio of PPI policies is compared to that of other types of insurance (household insurance has a claim ratio of 55%) it is not surprising that the FSA has been investigating and scrutinizing these policies for the past six years. If you're successful in claiming PPI insurance payments back you may also be able to have the loan terms and conditions renegotiated. As an example of the excessive cost of a payment protection insurance policy - a £10,000 personal loan could carry a PPI policy that costs as much as £5,600 which is a significant refund that can provide substantial repayment assistance for borrowers that are successful in claiming PPI insurance back.

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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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