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Loan Protection Definition

A concise loan protection definition might read, "A type of insurance policy that is supposed to provide help with repayments on a loan, credit card, or mortgage in the event that the policyholder is unable to make payments due to sudden illness, debilitating injury, or unforeseen unemployment". While this is an accurate definition according to payment protection insurance (PPI) companies, statistics released by several financial authorities including the Citizens Advice Bureau (CAB), Financial Ombudsman Service (FOS), and the Financial Service Authority (FSA) indicate that the majority of PPI policies do not provide any protection promised to policyholders. In fact, during 2007 almost all of the PPI claims brought before the FOS were honoured.

Loan Protection Definition of Eligibility

According to the Financial Services Authority (FSA), lenders are supposed to recommend PPI policies that are suitable for the needs of the borrower, otherwise they may be held responsible for providing compensation. As such, any policy sold within the past several years is up for review, and borrowers that were misinformed or inadequately informed may be able to claim back PPI payments with ease. Instead of acknowledging the startlingly low rate of honoured PPI claims, payment protection insurance companies insist that is the lender's fault for not verifying the eligibility and coverage needs of their clients before enrolling them for a policy.

Loan Protection Definition of Coverage

Although PPI is supposed to provide a backup source of funding for repayments if a borrower or cardholder is unable to work for various reasons, there are very few scenarios that are covered. When a policyholder files a claim for benefits it usually takes several weeks for the claim to be processed, after which more than 85% of claims are denied. Unfortunately, this means that less than 15% of individuals that have paid thousands of pounds for a payment protection insurance policy will never receive the coverage they were promised. In fact, more people receive help with repayments by filing a claim against the lender than policyholders that receive benefits from a PPI policy.

Loan Protection Definition of Refund

Whilst the exact amount of the PPI refund cannot be guaranteed or predicted with 100% accuracy, most PPI refunds include the entire cost of the policy premium as well as additional interest charged by policy repayments. Utilising the professional services of Belmont Thornton can help you receive a full PPI refund within a matter of eight weeks, and if your claim is not honoured you won't have to pay anything at all. PPI refunds usually take less time when they are facilitated by a professional PPI company like Belmont Thornton. You can minimise the amount of time it takes for your claim to be honoured by filling out a quick claim form and following the guidance contained within the instructional claims pack that you'll receive in the post.

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