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Mortgage Payment Protection Plans

One of the most exciting changes to rules and regulations that govern the lending industry's unabashed mis selling of payment protection insurance is the new 14 day rule. No longer will lenders be able to coerce consumers into purchasing payment protection cover at the time when the loan is agreed because borrowers must now wait a full 14 days before purchasing payment protection. This is especially significant to those with mortgages because traditionally mortgage payment protection plans have been by far the most costly. This should significantly lower the number of PPI claims in years to come, however, mortgage PPI claims have remained fairly consistent over the past few years.

What Is a Mortgage Payment Protection Plan?

To honestly answer this question would be to say there really is no such thing! In reviewing the payment protection plans on the market, it has been discovered that only 13% to 15% of all people ever qualify for cover under the policy. Unfortunately, the sad aspect to this fact is that although so few qualify, lenders are shamelessly selling mortgage payment protection plans to 60% or more of those who take out primary or secondary home loans. In any event, to get back to the question, a mortgage payment protection plan is simply meant to be an insurance cover that will make loan repayments if the policyholder should suddenly lose income due to unemployment, injury or illness. If they could provide the cover they were intended to provide they would be a wise investment, but unfortunately, this is not the case as there are so many exclusions and conditions in the small print.

How are Mortgage Payment Protection Plans Mis Sold

If you have been sold a payment protection plan and you would like to see if you can file a PPI reclaim of money you paid into the policy, the first thing to do is determine whether or not you were mis sold PPI. Although there are a lot of ways in which this can be accomplished, there are really only a few broad categories to consider which include:

  • Did you know the lender was putting PPI on your loan?
  • Did you want or need payment protection insurance?
  • Did you qualify for cover?
  • Were all the pertinent details discussed so that you understood what you were buying?
  • Were you told the loan was contingent upon buying loan insurance?

In other words, you must know that the policy is being added to your loan and you must be given the choice of whether or not you want to buy it. As well, all details including conditions, exclusions and cost must be fully disclosed and if you don't qualify under the exclusions you should not buy insurance because you will not be able to draw benefits. Finally, you cannot be told that the loan is contingent upon carrying payment protection because it is not mandatory that you carry it.

If you feel you have been mis sold payment protection insurance and would like to file for a refund, contact the claims team at Belmont Thornton, Belmont Thornton. We can help you file your claim as we have helped thousands of consumers in the UK claim back the money they deserve. The number to call is 0207 471 2000 and a claims team member would be happy to answer any questions you have.

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