Wrongly Sold Loan Protection
By the very sound of the name you would expect loan protection to be the type of insurance that is in effect to protect the loan in some way or other. In the manner in which it is used loan protection is a type of insurance that is meant to make payments in the event that the borrower should suddenly be without income sufficient to make payments. At least this is what it is supposed to do but
it doesn't always work the way it is supposed to. The reason for this is simply because there are many conditions and exclusions attached to each policy.
If these conditions were not fully explained, even unknowing, the lenders still
wrongly sold loan protection insurance to a good majority of people.
Exclusions That Make It Difficult to Be Covered
Some exclusions are more common than others, for instance exclusion which states self-employed or temporarily employed persons are not eligible to be covered under payment protection insurance. This is one of the most common exclusions which are coming up when filing for wrongly sold loan protection insurance. Another common exclusion that is filed against quite often is in regards to people with pre-existing medical conditions who try to draw benefits when missing work as a result, direct or indirect, of that pre-existing condition. It is up to the lender to term and whether or not a borrower has any pre-existing conditions and to get that in writing so as not to participate in wrongly sold loan protection. Also, too many policies are wrongly sold to senior citizens over the age of 65 who are in eligible for cover and of course all-time students and pregnant women who believe they will be able to draw benefits to pay their loan payments while they are out on maternity leave. Each of these constitutes mis sold PPI and thus makes the borrower eligible to claim for a PPI refund.
How to Avoid Being Wrongly Sold Loan Protection
It is actually far easier to avoid being wrongly sold loan protection insurance then it is to correct it once you have been sold. You cannot just stop making payments on your loan because the lender will have grounds to declare you in default. Also, trying to make a claim against mis sold payment protection
can take some time.
If you feel that you have been wrongly sold loan protection insurance contact the claims team on 0207 471 2000. This phone call is free and you will be able to speak with a claims
handler who came give you further information on filing a claim against wrongfully sold loan protection insurance.
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