Mis Sold Protection Insurance
Payment protection insurance is taken out in the event that the individual borrowing the money cannot repay the loan due to job loss or ill health. This is totally understandable with the economic situation as it is currently and job stability threatened in so many areas. Mis sold protection insurance is associated with so many claims being submitted by individuals based on the lack of knowledge or misrepresented Payment Protection Insurance that has been incorporated into a monthly loan payment to a financial institution.
Causes of Mis Sold PPI
From 2005 to 2010 there has been a substantial increase in the amount of mis sold protection insurance claims being presented by individuals. There have been claims by individuals who should never have been paying Payment Protection Insurance such as tertiary students, retirees and already unemployed persons. Mis sold protection insurance has also been claimed by parties who have no idea that the monthly instalment being paid to the lender includes an insurance premium. Yet others have claimed mis sold protection insurance as a result of insufficient explanation given at the time the loan was being taken. There are many other reasons which can be the cause of PPI claims and if individuals have any doubts in relation to a PPI claim it is advisable that assistance be sought with a recognised established PPI claims company.
Resolving Mis Sold PPI
While these individuals all believe that a valid claim exists as a result of mis sold protection insurance. There is a process to be followed when submitting a claim for a PPI refund. Firstly, a letter is sent to the lending institution requesting the PPI claim and elaborating on the reason for the claim. A period is given in the letter within which the institution is expected to respond. If further action is deemed to be necessary the matter can be taken to the Financial Ombudsman to be settled. It is truly unfortunate whereby in some instances the borrowers do not know that the insurance premium can range from between 25 percent to 56 percent of the premium. This was proven in 2005 by the Citizens Advice Bureau when a sample of cases with Payment Protection Insurance was reviewed. It was recognised at this time that there might be individuals who were legitimately entitled to PPI claims. Situations such as these have given rise to PPI refunds being granted to individuals as a result of mis sold protection insurance.
Companies such as Belmont Thornton provide a service to individuals with a proven case of mis sold PPI insurance. Many individuals cannot begin the process to recoup the premiums which were incorrectly paid and as a result do not claim back on these Payment Protection Insurance premiums. Belmont Thornton is there to make this process as easy as possible on the borrower. The first step is to give them a call at 0207 471 2000 and let the professionals do the rest.
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