Wrongly Sold Loan Insurance
It appears that the term "payment protection insurance" is quickly becoming synonymous with wrongly sold loan insurance. Of course loan insurance and payment protection insurance are one and the same thing but wrongly sold loan insurance means that there was some wrongdoing on the part of the person who sells the policy, and in this case that would be the lender. Normally insurance companies, insurance agents and even insurance brokers sell insurance policies but when it comes to loans is the bank officer or lender who suggest taking out payment protection insurance. Since
many policies have been mis-sold and thus can be considered wrongly sold loan insurance more and more people are able to claim back PPI money they have spent on this cover.
Why Lenders Pushed Loan Insurance
For many years lenders made significant profits from selling payment protection
insurance. The insurance generated around £5.5 billion a year making it often
more profitable than the interest from the loans and credit cards to which it
was attached. This huge profitability also encouraged lenders to do all they
could to boost sales. In some cases aggressive sales targets were set, in other
instances large rates of commission were offered. In some cases this led to
falling standards and many of the people encouraged to purchase loan insurance actually became victims of wrongfully sold loan insurance because they were not eligible for cover. It is this group of people, those who are not eligible for cover, which constitutes the biggest portion of wrongfully sold loan insurance policies.
Why Weren't We Told?
However, there is another kind of salesperson that knowingly wrongly sold loan insurance by putting that cover on the loan documents unbeknownst to the borrower. This group isn't able to offer any excuse and certainly didn't have good intentions. Actually in both cases, those who thought they were doing a good thing and those who knew they were doing wrong, lenders will need to refund any money the consumer spent wrongly sold loan insurance. Understanding that is the easy part, claiming back bank charges.
If you have been the victim of wrongly sold loan insurance you can either file a claim on your own or you could use the services of a professional claims
company. A reputable PPI claims company will not take any money up front and will only charge in the event that they win your claim for you. If you need help filing a claim against the lender who wrongly sold loan insurance the claims team at 0207 471 2000 can help you determine how best to file a claim against mis-sold PPI.
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