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Personal Loan Payment Protection Insurance

When presented with the option to carry personal loan payment protection insurance many consumers feel that this would give them peace of mind in the event that they would be unable to make their payments due to loss of work or illness. Unfortunately, personal loan payment protection insurance has so many exclusions that many people may be unable to claim against their policy.  Complaints are being registered with both the Financial Services Authority and the Citizens Advice Bureau regarding mis sold PPI on personal loans. Consumers do have recourse and can claim back PPI by following the proper procedure.

Proper Procedure for Filing Mis Sold PPI

The first thing to do when filing a claim against the lender for mis sold PPI is to substantiate that the lender misrepresented the policy or didn't tell you that you were purchasing this cover. The conditions and exclusions on personal loan payment protection should always be disclosed prior to selling the cover. Of course if you didn't know that you were buying personal loan payment protection these are ample grounds for filing a claim. The first order of business is filing for a refund with the lender through which alone was procured. You do not file a miss sold PPI claim with the insurance company, contrary to what many people believe. The only type of claim the insurance company handles are those filed against the policy itself when trying to activate cover. Claiming back bank charges is handled directly with the bank unless the bank denies your claim. Then you would need to go through the appeals process.

Consumers Ineligible for Cover

It appears as though more people are angry when being sold a policy they are ineligible to use them when they are sold policy against their knowledge. Being sold policy without knowing that you are being sold is one thing but being blatantly lied to and sold through underhanded methods is something else altogether. For this reason most claims that personal loan payment protection insurance was mis sold are based on misleading sales tactics utilized by lenders when coercing consumers to purchase PPI. Lenders know full well that anyone working a temporary job or who is self-employed would be ineligible for cover. Likewise lenders know that senior citizens over the age of 65 would not be eligible to use their policy nor would pregnant women be able to claim on the policy. Some women report that the lender knew they were pregnant and sold them this cover anyway implying that it would make payments while they were out on maternity leave.

If this were a perfect world personal loan payment protection would be a wonderful thing but this is far from a perfect world. If you have been mis-sold PPI cover and are looking to claim back bank charges talk to a claims specialist today on 0207 471 2000 get your claim under way.


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Belmont Thornton Ltd. is regulated by the Ministry of Justice in respect of regulated claims management activities; our registration is recorded on the website www.claimsregulation.gov.uk number 18273

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* Belmont Thornton operates on a "No Win No Fee" basis. This means that there are no upfront costs to pay. Our fee only becomes payable on a successful outcome of a claim. A cancellation fee is payable if you decide that having instructed Belmont Thornton to act on your behalf, and after 14 days of signing your Letter of Authority, you do not wish to continue pursuing your claim with us. The cancellation fee is the reasonable costs incurred for the work undertaken. Please see our terms of engagement.