Payment Protection Insurance Providers
Payment protection insurance providers are certainly part of the problem when it
comes to mis sold PPI but they appear to be a relatively small portion of it. The reason for this is that mis-sold PPI is all about what happened, and what the customer was told, at the point of sale. In most cases Payment Protection Insurance is sold by a broker or a lender, but is underwritten by a payment protection insurance provider. The company selling the insurance earns a commission, but they also carry the responsibility of ensuring the policy is sold to suitable customers and that all the terms are clearly explained.
Choices in Payment Protection Insurance Providers
One of the ways in which lenders are misselling PPI cover is to push certain payment protection insurance providers on their customers. When a loan is originated and loan insurance is sold, lenders are quite often found to be saying that the borrower needs to purchase cover from the insurance company they work with. This is not true. Just as it is
completely wrong to tell consumers they must have payment protection to qualify for the loan, it is also against
mis-selling to tell them which companies they can deal with and which companies they can't use. This is one of the reasons reclaiming PPI is so huge. Simply put,
many borrowers Were seriously misled! The truth of the matter is that consumers can choose any insurance provider they would like and there is nothing the lender can do about it.
Are Payment Protection Insurance Providers Responsible for Mis Sold PPI?
To some extent, payment protection insurance providers are responsible for misselling PPI but not to the extent at which lenders are responsible. It
is the lender who takes an application from a consumer when he or she is trying to take out a loan and of course it is the lender who actually sells the insurance product. Payment protection insurance providers actually have no contact with the consumer unless that consumer is trying to make a claim against the cover. It is
often at this point where consumers find that they have been mis-sold PPI cover and find that they need to make a claim to recover bank charges. Therefore, the role of the insurance provider is minimal. However, insurance provider could double check any policies to see whether or not the borrower actually qualified for this type of cover but this is just a check and balance maneuver. In the end it was the lender who mis-sold payment protection insurance.
If you feel that you have been mis-sold payment protection insurance and would like to file a claim for a refund,
call The PPI Claims Company. We are registered with the Ministry of Justice and have
already successfully filed thousands of PPI claims for consumers who were mis-sold PPI cover. To speak with a claims
team member today call 0207 471 2000
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