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Claim Back Loan Insurance

Reclaim Unfair Bank Charges

Payment protection insurance (PPI) is often sold or automatically included with various types of loans or credit cards. Many lenders and financial institutions sell these policies to borrowers that are not eligible for them in an attempt to earn commissions from insurance companies and boost the overall loan amount. For example, a lender may convince a borrower that a "loan protection insurance" policy is beneficial, or even mandatory for loan approval, thereby adding an additional £1500 to £3000 to a £10,000 personal loan. Since the PPI policy is technically paid for as part of the loan, the borrower will continue to make repayments towards not only the original loan amount but also the policy that they were mis-sold. In fact, some unscrupulous lenders will include such policies in a loan agreement without even notifying the unsuspecting borrower.

Is It Possible to Claim Back PPI Payments?

Yes, with the assistance of a professional PPI claim company you can begin claiming back bank charges caused by PPI policy payments or fees. It can take anywhere from one to six weeks to reclaim unfair bank charges caused by a PPI policy, however the average case time usually ranges from 2 to 4 weeks. Considering the fact that it would take several weeks to receive repayment assistance (if you're lucky enough to be within the 15% of policyholders that are actually eligible for coverage), it would seem more advantageous to simply claim back PPI against the dishonest lender that mis-sold the policy, rather than trying to pursue a claim against the insurance company independently as a seemingly 'ineligible' policyholder.

Who Would You Reclaim Your Bank Charges from?

Since the lender or financial institution that offers you the loan or credit card was responsible for ensuring that you were eligible for the PPI policy before selling it, you'd have to reclaim unfair bank charges from the lender, rather than the third-party insurance company. In some cases, the lender may be required to pay hefty fines in addition to the money refunded for the PPI policy. Fortunately, unlike many other types of lawsuits in which you would seek compensation or a refund, a PPI claim does not require you to pay any fees unless your claim is honoured.

Should You Contact the Bank to Reclaim Unfair Bank Charges?

While it would be ideal to contact the bank initially in order to diplomatically request that the charges be removed, if they're not willing to comply the best solution would be to contact a PPI claim company in order to seek retribution for being mis-sold a policy. The average claim amount for a mis-sold PPI policy on a typical personal loan ranges anywhere from £2000 - £3000. While this is a very small fraction of the total amount of mis-sold PPI policies each year (PPI brings in several hundred million dollars in profit for banks annually), if every PPI policyholder begins to take action it is possible that this scam will disappear completely in time.


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