Help With Bank Charges
Payment protection insurance (PPI), also known as loan protection insurance, is supposed to help with bank charges in the event the borrower becomes unemployed or suddenly ill and is unable to make repayments. Unfortunately this is the case for less than 15% of PPI policyholders, as the majority of PPI policyholders are not able to receive help with bank charges because they are denied repayment assistance by the insurance company due to alleged ineligibility. Equipped with this single statistic many consumers are now trying to claim back PPI, with approximately 50,000 UK residents successfully filing a PPI claim in 2010 according to the Financial Ombudsman Service (FOA).
Who Will Be Required to Provide Help with Bank Charges?
Ultimately, it is the fault of the party that mis-sold the policy (i.e. - the lender, credit card company or bank) to ensure that a policyholder is fully eligible for recommending a PPI policy. In addition, the lender is not allowed to leave the borrower into believing that the PPI policy is necessary for loan approval or that the amount that can be borrowed will be affected by the cost and coverage of the policy. PPI mis-selling the United Kingdom has become such a financial epidemic that the FOS has found that many private lenders and brokers generated the majority of their profit and income through PPI policies. In fact, more than 20 million policies in existence parties involved in the sale of PPI policies, including lenders, credit card companies, banks, brokers, and payment protection insurance companies, now generate "5.5 billion in revenue each year from PPI policies alone.
How Many UK Residents Receive Help with Bank Charges by Reclaiming PPI Each Year?
In 2006 several financial authorities conducted thorough investigations and studies into the mis-selling of PPI policies. Despite the fact that PPI policies can account for as much as 15 to 25% of the original loan amount, less than 15% of policyholders receive repayment assistance. Unfortunately, studies have shown that nearly 40% of policyholders are not even aware that they have the policy, and about 85% of policyholders are denied approval, giving PPI the highest claim denial rates of any type of insurance. Data released in the third quarter of 2009 by the Financial Ombudsman Service reveals that approximately 31,000 UK residents decided to claim back PPI payments that year. During 2010 that statistic rose to approximately 50,000 policyholders reclaiming PPI.
How to Receive Help with Bank Charges after Being Denied PPI Benefits?
Claiming back bank charges is simple with the professional assistance of a PPI claim company like Belmont Thornton, Belmont Thornton. Belmont Thornton has acquired the skills needed to communicate with the respective authorities and begin working for your PPI refund with your financial institution, lender, broker or card issuer. Initiating the reclaim process is as simple as submitting a claim form and partaking in a no-risk PPI claim consultation. Most of our clients receive help with bank charges only 2 to 8 weeks after filing a PPI reclaim.
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