Loan Insurance Claims
When a person is struck by misfortune such as involuntary unemployment, misfortune resulting to his/her disability, Payment Protection Insurance or PPI, covers loan payments/repayments in case a person lost his job, or unable to work for the reason of illness, accident and disability. There are plenty of types of Payment Protection Insurance, the most recognized of which are mortgage and credit card PPI.
The existence of Payment Protection Insurance on loans is fundamentally good for both the loan issuer and the borrower since it ensures the borrower that they won’t have to be concerned on paying their monthly loan in case they lose their employment, get seriously ill, or have to take a time out from work because they got into an accident.
Unfortunately, however, a number of banks and lenders get sneaky and resort to untruthfulness and fraud just to sell costly and unnecessary PPI to unknowing customers. Mis-selling of Payment Protection Insurance have occurred/still occurs in the UK. Thankfully, there are organizations that offer services to assist customers who have been mis-sold with PPI.
So what is considered as mis-sold PPI? Mis-sold PPI only differs on how it was sold. There are people who said their PPI was sold to them under pressure from their banks/lenders in which they were told that they also needed to get PPI if they want to get a loan. As a matter of fact, PPI should only be an option for the borrower especially if the borrower have his/her own insurance like contingency savings or connections. The bottom line is customers should select whether or not they want to get PPI. Things get even more difficult for the borrower if the PPI that was sold to him was undeclared or over-priced.
Those who have existing health problems, unemployed, self-employed o retired are mostly not entitled to get PPI or covered under PPI claims. Therefore if a person was sold PPI even though they’re currently under any of these position, and the lender is informed of the person’s situation, the PPI is considered mis-sold and may be considered null and void.
In addition, the Fraud Act 2006 adds to the arsenal in support of customers who have indisputable fact that they were mis-sold with PPI and wishes to do a PPI claim. More good news is that England’s Financial Services Authority (FSA) and the Financial Ombudsman Service (FOS) have been diligent in prosecuting institutions with complaints from customers on the topic of mis-sold loan insurance claims.
With the help of financial aid groups and backing of the law, thousands of successful PPI claims have been settled and diminished loan insurance fraud.