What Is Loan Protection
Financial institutions, credit card issuers, brokers and private lenders have started mis-selling loan insurance policies to add to the overall loan amount and increase interest profits. PPI policies are supposed to provide protection, however most of the time they simply cause the borrower to pay higher monthly payments, while also creating an additional financial burden unnecessarily. Credit card issuers and financial institutions are known for charging arguably unfair, unnecessary, and/or exorbitant penalties for common mistakes (i.e. late payments). While the basic premise of payment protection insurance (PPI) seemed logical, very few policyholders will be able to receive assistance from the insurance company, as statistically more than 85% of them will be deemed ineligible. If you've been denied repayment assistance by a payment protection insurance company, you may want to consider reclaiming PPI.
What Is Loan Protection Also Known As?
Because PPI is often referred to by a slew of different names, including but not limited to payment protection, repayment coverage, and credit protection. Since many lenders fail to even mention the existence of the policy, it is necessary to thoroughly review the fine print of your loan agreement and ensure that no unnecessary insurance policy premiums are attached to the overall loan amount. If you suspect that you've been paying for a PPI policy, or find yourself asking "What is loan protection?" it would be recommended to inquire with your lender and ask for an explanation regarding the insurance policy. Unfortunately, many consumers will have no choice but to seek professional assistance and obtaining a PPI refund, as they'll be unable to receive repayment assistance, regardless of how much they've already paid towards the policy.
What Is Loan Protection Reclaiming?
Loan protection reclaiming is the process of obtaining a refund of bank charges from the lender that mis-sold you the PPI policy, rather than seeking repayment assistance from the insurance company. All that is needed o claim back loan protection payments is basic details about your lender, and any additional information you'd like to provide related to how the policy was mis-sold, or why you feel you're entitled to compensation. When participating in a free consultation with a claims specialist may also be best to include the loan amount, duration, interest rates, and how you are charged for the policy, particularly if you're interested in receiving an estimate of how much you may be able to reclaim. Fortunately, you won't have to provide any payment details, as there are no upfront costs, and a professional PPI claim company will not charge you for their services unless you're successful in receiving a full PPI refund.
What Is Loan Protection Good for?
Sadly, for the majority of policyholders loan protection is ultimately good for nothing, as it does nothing but increase their monthly repayments by causing them to pay for policy that will never benefit them in any way. Although a very small percentage of policyholders are able to avoid debt by having their monthly repayments covered by a PPI policy, if you've already been denied assistance then there is a slim chance that you'll be able to regain any of the funds spent on the policy unless you file a PPI claim against your lender.
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