Payment Protection Laws
Many people who have been mis-sold payment protection insurance are keen to find
out where they stand legally and if they are able to make a claim for
compensation. Although there are no actual payment protection laws in place
there are guidelines which govern how w a policy should be sold and when these
guidelines are broken the customer has a right to make a complaint.
What is Payment Protection?
Payment Protection is a type of insurance cover sold with loans, mortgages and
credit cards. The cover is designed to protect the borrower against financial
hardship by stepping in to cover debt repayments in the event of involuntary
unemployment. Issues occur where the cover is not sold correctly. This may occur
in a number of ways including if the customer is not given full information
regarding the loan, the customer is pressured ito taking out the cover or the
customer is sold an unsuitable policy.
Guidelines that govern Payment Protection Sales
Although there are no payment protection laws, lenders must follow guidelines
when selling the policies. These guidelines are produced by the Financial
Services Authority and aim to protect the customer from the threat of being sold
an unsuitable policy. If a business fails to follow guidelines it may be
reprimanded by the FSA and fined.
What to do if you have been mis-sold a policy
If you have been mis-sold a payment protection policy you have the right to make
a complaint. Initially your complaint should be directed to the lender who sold
you the policy, but if it is rejected you have the right to request your case be
reviewed by the Financial Ombudsman Service.
To find out more about reclaiming PPI
and whether you are entitled to claim back unfair bank charges
call the PPI claims company on 0207 471 2000. Our claims team are on hand
to answer any questions you may have and we work on a no win no fee* basis.
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