Payment Protection Insurance Complaints
As a result of numerous payment protection insurance complaints leveled against lenders,
they are now being forced to compensate borrowers for mis sold PPI cover. Loan
insurance is not only expensive but it rarely provides cover for the people who
need it the most. To compound the issue, a good percent of the people who were
sold PPI didn't even know they were paying for it. In fact, they were never even
offered the option to purchase it, it was simply attached to a loan on
origination. Payment protection insurance complaints have continued to pour in
and loan protection insurance
complaints will probably still be doing so for years to come.
Weighing PPI Complaints against the Need for Loan Insurance
Although there are literally thousands of payment protection loan complaints that
are continuing to mar the lending industry's already tarnished reputation, loan
insurance in and of itself is not necessarily a bad thing. At least in principle
it isn't! The concept of having cover that makes payments on loan when the
borrower suddenly loses a job or becomes too ill to work is a good thing. However, Loan insurance can be very expensive and there are a high number of exemptions meaning many people, who believe they are, are not actually covered. The FSA had recently introduced tough new guidelines for the sale of loan insurance Which should, hopefully, see instances of mis-sale decrease considerably.
What Is Being Done about All Those Complaints?
Mis sold payment protection insurance has actually been a problem for at least
the last decade but it wasn't until the Citizens Advice Bureau (CAB) took note
of the sheer number of complaints submitted to them in 2005 that something was
done about the problem. After having launched a major campaign against lenders
who were propagating mis sold PPI, CAB went about raising public awareness. Now
consumers are more aware of the problem which enables them to take steps to
claim back mis sold PPI as well as providing with the knowledge to arm
themselves against being mis sold in the future.
Whilst you may not know if you personally have been affected by mis sold loan protection insurance, there is a good possiblility that one or more of your loans or bank accounts within the past decade had a form of payment protection insurance attached to them. Belmont Thornton's
claims team are always on hand to help consumers determine whether or not they have been mis sold payment protection insurance. If you have any questions or would like help filing a claim you can call the claims team at 0207 471 2000
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