How To Claim Back Insurance On Loans
Most people who are in desperate need of financial assistance are hesitant to question any suspicious terms and conditions found in a loan contract for fear that it could lessen their chances of approval. Many financial institutions and lenders use this intimidation factor as a means of persuading borrowers into purchasing payment protection insurance (PPI) policies. According to guidelines set forth by the Financial Services Authority (FSA), lenders are supposed to ensure that their clients receive PPI policies that are suitable for their needs, budget, and preferences. In addition, the lender is responsible for ensuring that the client is eligible for PPI coverage. Unfortunately, less than 15% of PPI policies are eligible for coverage, despite the fact that there are 20 million PPI policies in the UK alone. If you are one of the many consumers that have been mis-sold a PPI policy, this information may prove beneficial in learning to claim back insurance on loans.
The Rising Incidence of Mis Sold PPI
Mis sold PPI has become a financial epidemic in the UK, where studies have revealed that more than 90% of PPI policies reviewed by the Financial Services Authority in 2007 were considered to be mis sold. The amount of PPI complaints given to the Financial Ombudsman Service (FOS) in 2009 was approximately 31,000, and that figure rose in 2010 to around 50,000. This year, an estimated 60 to 80,000 complaints will be filed in relation to mis sold payment protection policies, and many more consumers will attempt to learn how to claim back insurance on loans. Just about two thirds of the claims assessed by the FOS pertained to different kinds of lending products, and the other forty percent were pertaining to credit cards and home loans.
How Can You Determine Whether Your Policy Was Mis Sold?
A policy is considered mis sold PPI if the loan company persuades the borrower into believing that it's necessary for the approval of the loan, or that not paying for the PPI Policy might reduce the total amount that can be borrowed. If you want to know how to claim back insurance on loans you need to know what information can help your claim. As long as it can be proven that the loan protection coverage was forcefully sold, either by means of deceit or misleading salesmanship, you may be successful in claiming back PPI. If you feel you were not fully advised of the policy's coverage/eligibility prerequisites and repayment structure, or should not have qualified for the policy when you signed for the loan, you may want to contemplate reclaiming PPI.
By requesting a free consultation with a member of the Belmont Thornton claims team, you can learn how to claim back insurance on loans within just 4 to 8 weeks. The initial consultation process usually takes less than twenty four hours, after which you'll be sent a free claim pack in the post that needs to be completed in order to help Belmont Thornton help you. Since the small percentage of PPI policyholders that actually receive benefits went anywhere from one to two months before receiving them, to be able to receive a full PPI refund within that same timeframe is much more desirable.
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