Welcome Loan Protection
Since early March 2011 Welcome Finance has been in default. This means that the business is not financially in a position to settle claims against it. Fortunately, as Welcome is authorised by the Financial Services Authority, their claims will now be examined by the Financial Services Compensation Scheme (FSCS). The FSCS will examine the complaints in the same way that Welcome would have and pay compensation as necessary. This is good news for anyone who feels they may have been mis-sold Welcome loan protection.
For many years Welcome Finance was a market leader specialising in providing loans to customers with poor credit history. Welcome also made significant profits from selling Loan protection, often known as loan insurance or PPI. Loan protection is a type of cover that insures a borrower against loss of employment as a result of sickness, redundancy or accident. It works by stepping in to take over repayments thus preventing the customer from suffering financial hardship. Issues arise with loan protection cover where it is not sold correctly and customers are left with a policy they didn’t want, need or cannot use.
In the last few years the mis-selling of loan protection has become a significant issue as it has been revealed that many thousands of policies have; in fact, been mis-sold. The cause of the mis-selling scandal is difficult to pinpoint and it is likely to be a combination of several factors. Many lenders have been criticised for failing to correctly train staff or to put in place appropriate processes to prevent mis-sale. Many commentators have also highlighted the fact that the large commission rates offered by many lenders resulted in failing sales standards.
If you think your Welcome loan protection policy was mis-sold we can help you pursue a claim. To find out more about the claims process or to start your claim, call 0207 471 2000.
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