Nationwide Loan Insurance
If you have a mortgage it is very likely, when you bought your property, that you were offered some form of loan insurance or payment protection cover. Loan insurance insures your debt repayments. It works by stepping in to take over should you be unable to work due to sickness, accident or involuntary unemployment. Although loan insurance can be a useful product and provide valuable peace of mind, it is not suitable for every customer.
Investigations by the Office of Fair Trading (OFT) and the Financial Service Authority (FSA) in 2006 revealed a catalogue of issues with the way loan insurance cover had been sold by some lenders. Instances were discovered where policies were added without the customer’s consent and customers had been put under undue pressure to take out cover. Since the OFT and FSA investigations there has been a sharp rise in the number of customers making payment protection insurance claims. Since 2005 more than 1.5 million complaints have been received by the FSA. Below is a list of some of the most common ways in which policies have been mis-sold. If any of these circumstances apply to you it is possible your Nationwide loan insurance policy was mis-sold and you may be entitled to make a claim.
The policy was sold without full terms and conditions being explained.
The policy was added without the full costs being made clear.
The customer was sold the policy even though they were unemployed, retired or in full time education and, therefore, not suitable for this type of insurance.
The customer already had existing cover in place elsewhere or was entitled to full sick pay from their employer.
The customer was incorrectly told that taking out payment protection insurance would guarantee their loan approval.
The customer was incorrectly told the cover was compulsory.
To find out more about making a claim for mis-selling call our team on 0207 471 2000. Remember, if your Nationwide loan insurance policy was mis-sold you could be entitled to thousands of pounds in compensation.
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