Belmont Thornton Logo
Claim Back Loan Insurance

Loan Protection Scheme

Loan protection insurance, also referred to as payment protection insurance (PPI), is supposed to provide protection for consumers who are unable to make repayments on a loan, credit card, or mortgage. However, since 2006 several financial authorities in the UK have revealed the widespread nature of PPI mis-selling, which is driven primarily by greed and the desperation of borrowers that are willing to sign loan agreements without thoroughly reviewing or questioning the fine print related to attached insurance policies. Even when many borrowers do question their lender about the necessity or purpose of a PPI policy, most lenders will simply state that is mandatory or somehow beneficial for loan approval, and that it could protect their credit score in times of financial distress. However, given the fact that 95% of PPI policies sold in 2007 were found to be mis-sold by the Financial Services Authority (FSA), it would seem that the term "protection" should be removed from the name of this type of insurance.

The Dynamics of a Loan Protection Scheme

While the Financial Services Authority (FSA) has openly criticised insurance companies that specialise in loan insurance for not honouring a decent amount of policy claims, many lenders and financial institutions that forcefully sell policy using misleading information have already been fined millions of pounds in cases that have received national attention. Given the high rate of honoured PPI refunds during the last couple years as a result of increased exposure by several financial authorities, every client has an excellent chance of receiving complete compensation during 2011.

Who Benefits in a Loan Protection Scheme?

Each year the lenders, brokers, financial institutions, and credit card companies cooperate with insurance companies that offer PPI policies to generate billions of dollars in policy premiums. While these colleges are supposed to provide protection for consumers that are having difficulty making repayments, a very small percentage will actually receive policy benefits, with more than 85% being denied repayment assistance due to coverage ineligibility. Ultimately, the lender that performs the task of convincing the borrower that a PPI policy business series stands to gain the most from a loan protection scheme, as they not only receive a commission for facilitating the sale of the policy, but also increase the amount of interest earned by heightening monthly repayments.

How to Report and Receive Compensation from a Loan Protection Scheme

The fastest, easiest, and most convenient way to report a loan protection scheme and receive full compensation is to contact Belmont Thornton by filling out a quick claim form with your basic contact information. By doing this you'll be opting to receive a free claims act in the post that will describe the process of reclaiming funds spent on loan protection insurance. If all goes well, the entire reclaim process should take no longer than 4 to 8 weeks, which is a comparable amount of time to how long it takes for less than 15% of PPI policyholders to receive repayment assistance.

Tell a Friend
blog comments powered by Disqus

Enquiry Form

First Name 
Last Name 
Mobile Phone
Home Phone
Address Line 1 
Post Code 
Claim Back Mis-Sold PPI Button

Why Choose Us?

  • TickAbsolutely No Upfront Costs. No Win No Fee*
  • TickSpecialist Claims Team Always On Hand To Answer Your Questions
  • TickQuick, Easy And Simple Process
  • TickU.K. Based Call Center
  • TickGuaranteed To Start Your Claim In 24 Hours

Loan claim: Building societies warn of house price bubble

The Building Societies Association (BSA) is the latest to warn about the potential house price bubble that could arise f...

Bank claim: Lloyds raised concerns on Co-op finances

Lloyds Banking Group was aware that the financial position of the Co-Operative bank was unstable, said Lloyds chief exec...

Loan claim: first time buyers locked out for a decade

First time buyers will have to save up their deposit on a house for more than ten years, according to research from the ...

Bank charges: Commission tackles issue of RBS

The weak position of the Royal Bank of Scotland (RBS) is damaging to the UK economy, according to the Parliamentary Comm...

Bank charges: Report says customers and taxpayers were failed

Customers and taxpayers have been failed by the financial sector, according to the final report from the Parliamentary C...

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.

Belmont Thornton Limited is registered with the Information Commissioners Office. Registration number Z1728023.

Please note that calls may be monitored for the purposes of staff training.

* Belmont Thornton operates on a "No Win No Fee" basis. This means that there are no upfront costs to pay. Our fee only becomes payable on a successful outcome of a claim. A cancellation fee is payable if you decide that having instructed Belmont Thornton to act on your behalf, and after 14 days of signing your Letter of Authority, you do not wish to continue pursuing your claim with us. The cancellation fee is the reasonable costs incurred for the work undertaken. Please see our terms of engagement.

By using our web-site, you agree that we can place the types of cookies described in our privacy policy on your device.Hide