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Loan Protection Plans

There are a number of loan protection plans on the market, depending on which type of loan you are taking out and who your lender is. Although you will no longer be able to take out loan protection insurance within two weeks of closing on a loan, be aware of the fact that your lender is still likely to talk to you about insurance which they offer in-house. The reasons for being cautious will be explained a little later, but at the moment you need to understand one important fact about loan protection plans.

Consumer Protection and Fair Trade Competition

The first thing you should always understand is that the UK is very specific on laws pertaining to fair trade competition. This is one of the major complaints levelled against lenders during the PPI claims investigations. It was found that lenders were not only discouraging fair trade but they were denying it altogether in many cases by telling potential borrowers that they had to purchase loan protection plans with the company they use. This is not only unethical, it is illegal! If you need further clarification on fair trade competition laws then simply visit the Office of Fair Trading website. You will clearly see that you have the right as a British citizen to choose which company you want to buy insurance from, if any! You even have the right to refuse if that is more comfortable for you.

Why the New 'Two Week' Legislation Is So Important

If you are here at the Belmont Thornton, PPI Claim Company, website then chances are you are looking to reclaim money you have paid into mis sold loan insurance. This is exactly why the FSA (Financial Services Authority) was so intent on getting this two week rule through legislation. Lenders were coercing borrowers to purchase loan protection plans and were adding that extremely high one-time premium to the loan. Then, the total amount was amortised over the term of the loan which meant that consumers were paying considerably more than they bargained for. Lenders were incentivising PPI sales with their loan officers and the result was disastrous for the public at large. Now they can no longer do that because consumers are not allowed to buy loan protection plans from lenders for two weeks after closing on the loan.

Whilst this new two week rule will not impact whether or not you can reclaim mis sold loan protection you have already purchased, we at Belmont Thornton want you to be aware of current legislation so as to give you that added bit of protection in the future. It is true that we want to represent you in your current claim against your lender for misselling payment protection, but we don't want you coming back next year and the year after because you weren't armed with the information you needed to keep unscrupulous lenders at bay. You are important to us and we want to help you claim back what is yours whilst keeping what you still have in your own pockets where it belongs. For information on filing a claim on mis sold loan protection plans contact the claims team on 0207 471 2000. Our team will work diligently to help you reclaim mis sold PPI.

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Belmont Thornton Limited is regulated by the Claims Management Regulator in respect of regulated claims management activities; our registration is recorded on the website number 18273

Belmont Thornton Limited is incorporated in England and Wales, Company number 6621233, whose head office at Unit B11, Kestrel Court, Harbour Road, Portishead, Bristol, BS20 7AN and registered office at Harwood House, 43 Harwood Road, London, SW6 4QP.

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