Reclaiming Loan Charges
Being approved for a loan that has fair terms and conditions and no hidden fees can be extremely challenging for a subprime borrower with less than exceptional credit. It seems as if banks and lenders are continuously finding new ways to boost profits by enforcing penalty interest rates and bundling additional services such as insurance policies. One of the most commonly mis-sold insurance policies in the United Kingdom is payment protection insurance (PPI). Lenders mis-sell policies in an attempt to earn a commission from the payment protection insurance company, while also increasing the total amount of the loan and subsequent interest earned. In other words, a £10,000 loan may include a £1500 PPI policy that earns interest at the same rate as the original loan amount. If you're trying to reclaim funds spent on a mis-sold loan insurance policy, consider the following information.
How to Confront a Lender about a Loan Protection Insurance Policy
Most banks and lenders will insist that a loan protection insurance policy is absolutely necessary or highly beneficial if they're questioned about the necessity or purpose of the policy charges. Reclaiming loan charges directly from the lender without any professional legal assistance is highly unlikely, and it would therefore be advisable to contact a PPI claim company to deal with the unscrupulous lender in a more effective manner. The PPI claims specialist will contact the necessary authorities to ensure that the lender is forced to refund all of the payments made towards the mis sold PPI policy. Last year alone nearly 50,000 residents of the UK were successful in reclaiming loan charges caused by mis-sold PPI policy payments.
Why Are so Many People Reclaiming Loan Charges Caused by PPI?
In 2006 the Financial Services Authority and several other business organizations conducted investigations proving that many prominent lenders and financial institutions were using deceitful tactics to mis-sell PPI policies to borrowers and cardholders. An alarmingly large percentage of PPI policyholders (nearly 90%) were ultimately deemed ineligible for benefits when attempting to seek repayment assistance. Less than 15% of policyholders actually received assistance, and it usually took weeks to arrive, in the form of small incremental payments. By filing a claim against the lender that mis-sold this useless policy, you can begin reclaiming loan charges worth thousands of dollars within a matter of weeks, in one lump sum, without having to pay the PPI claim company unless your claim is honored.
How Long Does Reclaiming Loan Charges Take?
The entire claims process usually takes anywhere from 2 to 6 weeks, however you should receive a response within 24 hours from the PPI claims specialist regarding the case. A good PPI claim company will refuse to take the case unless there is a good chance of reclaiming all of the payments caused by the PPI policy, as most offer their services on a 'no win no fee' basis. Reclaiming loan charges through a PPI claim company is a simple and convenient process that can help you receive a refund of several thousand dollars for a typical personal loan.
blog comments powered by