Egg Loan Protection
The number of customers reclaiming PPI has increased tremendously in the last five years with in excess of 1.5 million complaints being submitted to the Financial Services Authority alone.
PPI stands for payment protection insurance. It is a type of cover sold alongside loans, credit cards and mortgages. It can be known by a number of different names including loan insurance, mortgage payment protection insurance and accident, sickness and unemployment cover.
PPI covers a borrower in the event they are unable to keep up with their debt repayments as a result of illness, accident or involuntary unemployment. The cover works by stepping in to take over the customer’s repayments. The cover is good in theory, but in practice it does not always offer the level of cover the policyholder may expect.
The issues regarding PPI, including Egg loan protection cover, were highlighted in investigations by the Financial Services Authority and the Office of Fair Trading in 2006. The investigations found a catalogue of failings across the lending world including cases where the insurance had been added without the customer’s knowledge and where customers had been sold cover they were ineligible to use.
As a result of the investigations, several lenders faced significant fines. One of these lenders was Egg who was found to have several failings with regard to the sale of cover. After examining telephone sales between January 2005 and December 2007 it was found there were issues with approximately 40% of sales. The issues discovered included a failure by some salespeople to get clear confirmation from the customer that they were happy to hear only limited information regarding the policy and an instance where cover had been added without the customer’s consent.
If you believe you have mis-sold Egg loan protection we could help you make a claim. To get started call us today on 0207 471 2000
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