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Illegal Loan Insurance

To be quite honest, the words illegal and insurance should never be seen together in the same sentence. However, recent events have proven that there are in fact illegal loan insurance policies being sold. People who do not have a clue are being sold cover that they should not as they are unqualified for it. A very good example is the misselling of payment protection to people who do not meet the requirements set forth by the insurance companies. There are different guidelines and restrictions imposed by different insurance companies and if a lender does not pay attention to them when selling cover then this could be considered illegal loan insurance.

Forcing People to Purchase Cover

Not only is ignoring stipulations which are in place by insurance companies a foul practice, but forcing a borrower into purchasing cover is also one way of selling illegal loan insurance. How, you ask can a lender force a borrower to purchase loan protection insurance? It is very simple and lenders have been doing it for years. They tell borrowers that the policy is mandatory or the loan will likely not be approved. Obviously if a person wants a loan bad enough then he/she is going to jump through whatever hoops are necessary. This includes but is not limited to buying illegal loan insurance. Is it ethical or legal to tell a borrower or anyone else for that matter that they must purchase some sort of protection if they are going to take out a line of credit or loan? Absolutely not!

Top Reasons for PPI Claims

Payment protection claims are a big deal in the UK right now and there are literally thousands of them. The main reason for these claims is the above mentioned. People are being sold illegal loan protection every day. In fact it has become somewhat of a common thing. Fortunately, Citizens Advice Bureau (CAB) has seen to it that a super complaint be lodged against the lenders committing this trickery and creating this scandal. As a result it has made collecting refunds and winning claims a much easier task for many people.

If at First You Don't Succeed

If you are to file a PPI claim and be denied then do not lose hope. The problem here seems to be that all initial claims are at first reviewed by the lender in question. For this reason you can practically count on your claim being turned away the first go round. However, there is good news here. The appeals process works much differently. When a claim is denied then it must go to a higher authority to be heard. This is why the FOS- Financial ombudsman will be the entity which reviews all appeals. Here is the best bit; they have been approving about 90% of all appeals that come through them.

If you've been dealing with illegal loan insurance then Belmont Thornton is a name you can trust to help you file your claims. We've been dealing with this issue and have helped thousands more before you. You can contact us easily through this website or call us at 0207 471 2000.


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