Mis Sold Loan Insurance Text
The Financial Services Authority is quite clear in what they are saying about mis sold loan insurance text. The new guidelines state emphatically that consumers must be informed of the terms and conditions of PPI cover and must further sign a document stating that they have indeed been informed. This mis sold loan insurance text reads quite clearly and this is what lenders are objecting to.
Policy Conditions Must Be Explained
It has always been required of lenders to explain PPI cover to borrowers before selling them a policy but somewhere along the line they simply stopped doing that to a large extent. Instead, many lenders just added the cover, implying that it was part of the loan while others implied that the loan would be easier to get if the cover was purchased. Neither of these is true and if the lender implied either one, the consumer can file for a PPI reclaim through which they will get any money back they paid into the cover. Mis sold loan insurance text reads quite clearly in this regard.
Lenders are Required to Act Quickly on PPI Claims
Mis sold loan insurance text within the FSA guidelines further states that lenders must act quickly in reviewing PPI claims
that consumers file.
Borrowers Must Acknowledge Disclosure in Writing
One of the reasons why so many consumers have not understood that they were mis sold payment protection cover is because there was never any disclosure as to their rights regarding purchasing this cover. Now there are new guidelines which state clearly that consumers be given a written copy of mis sold loan insurance text which they must sign. This text states that the consumer understands payment protection and that they have been given the option to purchase it. If the borrower chooses cover, he or she does so knowingly and without being coerced in any way.
When in Need of Help Understanding New FSA Guidelines
If you are looking for help understanding the new FSA guidelines and how they affect mis sold loan insurance text you can browse through an extensive list of resources on Belmont Thornton's website. As well, if there is any question as to whether or not you can file a claim against mis sold cover you could contact the claims team on 0207 471 2000 where a claims
handler will be on hand to address your concerns.
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