Payment Protection Payments
How Payment Protection Payments Affect a Loan
Keep in mind that PPI, payment protection insurance, can cost as much as 13% to 56% the amount you are borrowing. But PPI cover is handled a bit differently than other types of insurance in that you are paying interest on it since it is paid one time, up front, and tacked onto the amount you are borrowing. That means that if you borrow £100,000 and you are charged 50% the price of your loan, your loan payments will be amortised on £150,000, not £100,000! Now you can clearly see how payment protection payments can make such an increase in the amount you are paying monthly. For this reason, consumers are finding that they have been mis sold PPI and as a result, PPI claims are literally overwhelming banks and other lenders.
Taking Steps to Reclaim Mis Sold Payment Protection Payments
With PPI reclaim the first thing you might want to do is examine your loan documents carefully. If you were mis sold PPI cover without your knowledge or consent you have a very good case. Following an FSA investigation, consumers can make a claim for mis sold PPI and this is a prime example of how some policies were mis sold. From there it is necessary to make a claim with the lender for a PPI refund.
If your initial complaint is rejected, you have the right to appeal to the Financial Ombudsman Service. The FOS is also overwhelmed with appeals from consumers looking to get payment protection payments refunded to them. If you require assistance with your claim, Belmont Thornton doesn't charge any money up front and operates on a no win no fee* basis. For further details, talk to a member of the claims team on 0207 471 2000 to get started on your PPI claim today.
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