Mis Sold Payment Protection on Loans
It is unsurprising that so many lenders, of different sizes, were so eager to
sell payment protection insurance for so many years. For many the insurance was
viewed as a huge 'cashcow.' Generating in excess of Â£5.5 billion a year PPI was
often more profitable than the interest from the loans to which it was attached.
In adition, the low payout rate associated with this kind of insurance meant
that the profit margins were potentially even bigger. Unfortunately, following
several high profile investigations, borrowers began to become aware of the
issue of mis sold payment protection on loans.
As public awareness of the issue of mis-selling grew so did the number of
people choosing to claim back PPI.
Since 2005 more than 1.5 million have registered a complaint with the Financial
Service Authority and the figure continues to increase. The larger banks are
thought to have paid out hundreds of millions of pounds with more allocated for
future claim payouts. Mis sold payment protection on loans has become one of the
biggest financial scandals in British banking history.
If you are unsure whether you may be entitled to start Claiming back bank charges
you should reflect back on the way in which your policy was sold to you. Did you
feel pressured into taking out the cover or were you given incorrect information
regarding what the policy covered or how much it cost? These could all become
the basis for a case for mis-selling. You may also be entitled to make a claim
if something about your situation made you unsuitable or ineligible to make a
claim. If, for example, you were retired or in full time education when you took
out your loan you should not have been offered this insurance as it covers for
loss of employment. Similarly, if you were over the age of sixty-five you should
not have been sold a policy as most PPI policies do not cover people over this
If you believe you were mis sold payment protection on loans you can start your
claim today by calling 0207 471 2000 or completeing our online claim form. There is no limit to how many claims you can make and you can even make a claim if your loan is already paid off.
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