Halifax PPI
As the country’s largest residential mortgage provider Halifax PPI has been widely sold. For many people payment protection is a valuable policy, but it does not always represent good value for money and is not suitable for everyone. The cover has been widely mis-sold and has risen to become the most complained about financial product.
Mortgage PPI, whether it is Halifax PPI or PPI sold by another bank, building society or broker, can be costly. It can cost up to 25% of the base value of the mortgage and attracts interest at the same rate. As a consequence, it is likely to either make your monthly mortgage payments significantly higher or increase your repayment term.
Given the cover is designed to take over repayments if you are unable to work because of accident, sickness or involuntary unemployment many feel the cost is worth the risk of potentially losing their home. An investigation by The Competition Commission in 2008; however, revealed that just 28% of customers who tried to use their mortgage PPI policies were successfully able to do so. This means that more than two-thirds of customers paying for mortgage PPI may be unable to use their cover.
The cause of the high numbers of rejections is unknown, but it is sure to have been partly influenced by widespread mis-selling. If you are unsure whether your Halifax PPI policy may have been mis-sold the list below may help.
Were the full terms and conditions of your mortgage PPI policy explained to you? Your lender should have explained the conditions and exclusions of your policy. For example, most PPI policies do not cover pregnancy or common ailments such as back pain or stress. If you did not receive this information in full your policy may have been mis-sold.
Were you made fully aware of the costs of your mortgage payment protection cover? In order to decide whether the cover was right for you your lender should have made you fully aware of the costs involved.
If you were sold a single-premium PPI policy were you told it may only last for five years? Single-premium PPI policies usually only last for a maximum of five years, if you took out one of these policies and you had a mortgage for a longer period of time you should have been warned you may not be covered for the whole length of your loan. If your lender failed to fully explain your mortgage PPI policy to you, you could be entitled to make a claim.
Were you told you had to have the cover or it would improve your chances of being given the mortgage? These statements are both incorrect. Mortgage PPI is always an optional extra and would not affect your mortgage application.
Were you pressured into taking out cover? Your lender should have explained the cover in full and then given you time to consider whether or not the cover was right for you. If you felt hurried or pressured into taking out the insurance your policy may be considered mis-sold.
To find out more about making a PPI reclaim call 0207 471 2000.
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