Reclaiming Loan Insurance
Loan insurance is supposed to provide assistance with repayments when a borrower is unable to afford his or her monthly loan payments due to unemployment or injury/illness. However, nearly 90% of loan insurance policyholders will be ruled ineligible for benefits by the insurance company after filing a claim. Loan insurance, also commonly referred to as payment protection insurance (PPI), is one of the most common policies included with personal, business, and home loans. If you've been wanting to claim back PPI payments that were automatically taken from your bank account without your consent, consider the following information.
Disputing Bank Charges Related to PPI
Rather than contacting your bank directly to dispute charges related to policy payments, contact a professional claims company that has experience in reclaiming loan insurance payments from lenders and financial institutions that mis-sell insurance policies. Contrary to popular belief, PPI mis-selling is a common practice, particularly in the UK, where approximately 30,000-50,000 borrowers are reclaiming loan insurance payments annually. Even more surprising is the fact that the amount of annual PPI claims cases is expected to increase, as consumers become more knowledgeable and concerned about policy mis-selling and hidden charges in general. Ideally, you'll want the assistance of a qualified professional when claiming back bank charges related to any questionable include policies.
What Are the Requirements for Reclaiming Loan Insurance Payments?
To reclaim monthly payments or any one-time premium allocated towards a mis-sold loan insurance policy you'll simply need to prove that you were either ineligible or inadequately informed of the policy, or its terms and conditions. Fortunately, a good PPI claims specialist will be able to verify this information based on a small amount of your input, and will provide assistance in reclaiming loan insurance payments with minimal effort on your behalf. Since the consultation is free and Belmont Thornton will not charge you unless your case is successful, you really have nothing to lose and potentially thousands to gain.
What Are the Odds of Reclaiming Loan Insurance Payments?
While the odds of having a PPI policy claim honored by the insurance company are relatively low (less than 15%), the odds of successfully filing a claim against the lender that mis-sold the policy are relatively high (above 80%). Thus, it would make more sense to pursue compensation from the lender than to attempt to convince the insurance company that you're eligible for coverage and assistance with repayments via policy benefits. In addition, the process of reclaiming loan insurance payments through a PPI claim company may take less time than receiving assistance from the insurance provider.
blog comments powered by