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Was I Mis Sold Payment Protection

The obviously widespread mis-selling of PPI policies in the UK is causing a lot of attention to be focused towards lenders and insurance companies involved in the underwriting of PPI. Fortunately, most policyholders that file a claim against their lender receive a full refund with the assistance of Belmont Thornton. Contrarily, policyholders that attempt to file a PPI reclaim against the policy itself have less than a 15% chance of receiving repayment assistance. Payment protection insurance (PPI) is a type of cover that surprisingly does not provide protection for more than 85 percent of policyholders. This is primarily due to the fact that lenders often mis-sell PPI policies to desperate borrowers in an attempt to earn additional profits through commissions and heightened interest payments. If you've been wondering "was I mis sold payment protection", you may want to consider the following information.

Was I Mis Sold Payment Protection Through Misinformation?

In order to earn commissions and increase loan amounts some lenders will willingly overlook coverage eligibility requirement, fail to mention the true benefits of the PPI policy, and never inform the borrower of the cost, terms, or conditions of the policy. Other lenders will attempt to get away with PPI mis-selling by persuading applicants into believing that a PPI policy is either mandatory for approval or will have an effect on the amount that can be borrowed. In most cases, when a lender is selling a policy for an expensive price they'll finance the policy premium out of their own pocket and then require the policyholder/borrower to make the repayments toward the policy premium, with additional interest.

Was I Mis Sold Payment Protection so my Lender Could Earn More Profit?

Some PPI policies cost as much as 50% or more of the total loan amount - meaning a £10,000 unsecured personal loan could include a PPI policy that costs as much as £5600, making the true loan value only £5000. Fortunately, authorities in the UK have been fining major banks millions of pounds for PPI mis selling, so borrowers and PPI policyholders do have a reason to be optimistic. Each time a PPI policy is sold the party that performs the underwriting (whether it be a lender, mortgage broker, credit card issuer, or bank) receives a predefined commission from the insurance company. While this commission is usually larger for single PPI premiums that are charged upon loan signing, the lender also increases their profits by including the cost of the PPI policy within the overall amount to accrue interest with the original loan amount.

Was I Mis Sold Payment Protection Without my Consent?

According to the Financial Services Authority (FSA), lenders should only sell PPI policies that are optimal for the coverage requirements and financial needs of their clients. If they fail to perform the duties of ensuring eligibility and disclosing important information related to the policy they may be held liable for providing complete compensation for the policy premium when borrowers file PPI claims against them. Lenders that offer PPI policies in combination with their products are also obligated to notify borrowers that a PPI policy is optional. Finally, the lender is supposed to clarify eligibility requirements, and provide a brief review of policy exclusions.

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