Bank Charges Update
Loan insurance or loan protection insurance are terms that mean the same thing as payment protection insurance. Payment protection insurance (PPI) was introduced to United Kingdom with the intent of providing monetary compensation and insurance on behalf of financial service for its policyholders. This means that if someone was to get a credit card, bank loan, or mortgage and attach payment protection insurance to it when the monthly statements come around and the policyholder is unable to make the payments due to unemployment caused by hospitalization or illness
or involuntary unemployment the payment protection company will make the payments on behalf of the policyholder.
Mis Selling PPI
The main issue that caused such a uproar about payment protection was the fact that many lenders
had mis-sold payment protection. Lenders were mis-selling payment protection on
the basis of not informing borrowers that payment protection insurance with
optional some even went so far as to force payment protection upon his borrowers
by including the documentation for the policies in with the loan documents. This
meant some customers had loan protection insurance
and didn't even realise.
How Did They Do It?
They often times made the borrower feel as though payment protection
insurance was mandatory or that if they were to sign up for payment insurance
that it would increase their chances of being approved for the financial service. Worst of all, sometimes they didn't even inform the applicant they were applying for payment protection on the behalf of the applicant. Some lenders even sold these policies to people who would not qualify for this type of coverage. This type of behavior has led to many policyholders requesting a bank charges update to know if they have been
mis-sold. Many types of monetary compensation also, needing to be refunded to the borrowers such as bank charges, credit card fees, late fees, and any other fees associated with payment protection.
A large percent of the United Kingdom's population has been affected by the recent payment protection scandal. So much so that it is advised that if someone has payment protection attached to their bank in any form such as an electronic funds transfer for payment of the financial service or the payment insurance policy they get a bank charges update. A bank charges update would inform the policyholder as to any recent changes in the amount of money being charged on their account. PPI claims companies will use a bank charges update to aid in providing the best service for the policyholder was wronged. The Ministry of Justice set strict guidelines as to how PPI claims companies are ran and certified. Ensuring customers that in the event they must get a bank charges update and file a PPI claim they get justice just that they deserve.
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