Payment Protection Fraud
It wouldn't come as much of a surprise to find that virtually everyone who has taken out a loan or received a new issue credit card within the past decade has been directly impacted by the payment protection fraud that has infiltrated the entire lending industry. The figures coming out are mind boggling and it is estimated that over twenty million people in the UK have a PPI, payment protection insurance, policy on a loan, credit card or financial agreement of some kind. The question is, how many of those policies have been mis sold and furthermore, how many PPI claims are yet to come in? To date, more than 1.5 million unhappy customers have made a complaint, but it is estimated there could be millions more customers who are still entitled to make a claim.
Where Did the Payment Protection Fraud Come From?
No one can say with any amount of certainty where the payment protection fraud came from but it is clear that every single level of the lending industry has been impacted by this scandal in one way or another. As well, there is not a single type of lender, large or small, that hasn't been guilty of helping to perpetrate this racket. It has been nearly six years since the Consumer Advice Bureau (CAB) began their mega campaign to promote public and governmental awareness and this is just the tip of the iceberg.
What Is the Payment Protection Fraud?
What has happened is that lenders have taken an insurance cover that was meant to protect borrowers and have been misselling it to those who may never be able to make a claim or didn't actually want the cover. In some cases it was even added to the loan without the borrower's knowledge! Payment protection insurance is meant to make payments on a loan in the event that the borrower couldn't make loan payments as a result of being too ill to work for a prespecified period or through loss of employment. Obviously, this cover is meant for those who have a stable job with the understanding that the job is projected to be in place for the term of the loan.
Payment Protection Fraud Hoisted Upon Non-Qualifying Borrowers
In terms of those who are not eligible for this cover, it could include anyone over the age of 65, individuals who are self employed or temporarily employed, anyone with a pre-existing medical condition and of course anyone unemployed. These exclusions are clearly listed on the PPI policy yet lenders continue to sell these groups of people cover they will never be able to draw upon. Victims falling within these categories of excluded people can file for a PPI reclaim to get a refund since they were quite obviously mis sold the cover!
Payment protection fraud is a big business in the UK and it has been for a good long while. Steps have been taken to correct the situation both from a legal perspective as well as in raising the public's awareness. If you have any questions about payment protection fraud, especially if you believe you have been a victim, you can contact Belmont Thornton claims specialist team on 0207 471 2000 to help you sort it out. There is no fee for this consultation.
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