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Reclaiming Payment Protection Charges

When one hears the phrase "payment protection", feelings of security and well-being should be invoked. Unfortunately, these are the exact opposite emotions felt by victimized borrowers after discovering that they're unable to receive repayment assistance from their PPI policy due to ineligibility. The majority of PPI policyholders are deemed ineligible for benefits, primarily because payment protection insurance companies are not willing to fulfil a large percentage of claims for fear of decreased profitability. Furthermore, lenders earn commissions and increase interest earnings by mis-selling PPI policies. As such, reclaiming PPI payments has become a big business during the past six years, and each year 30,000 to 50,000 UK residents file claims against lenders that mis-sold PPI.

Reversing Bank Charges Related to PPI Payments

Bank accounts that are directly attached to home loans, business loans, or personal loans which include a PPI policy may automatically incur bank charges for the PPI premium upon loan signing. Furthermore, some lenders may set up recurring monthly fees to cover the cost of the PPI policy. If the policy was sold as part of the original loan then the borrower is continually making repayments towards accruing interest generated from the PPI policy and the original loan amount. Thus, it is not possible for the borrower to stop making PPI payments without defaulting on the loan itself, so reclaiming payment protection funds and demanding a different lender or negotiated loan terms is the only logical course of legal action.

What Are the Risks of Reclaiming Payment Protection?

The majority of the risks associated with reclaiming payment protection charges are mitigated by the fact that you will be represented by a professional attorney who is experienced in proving lenders guilty in mis-selling PPI policies. While some spiteful lenders may attempt to place a negative item on the credit report, this change would likely be temporary, as it would be reversed by several judgments, including a court order to refund all PPI payments and related interest. Ultimately, the benefits of reclaiming payment protection through a professional claims company far outweigh the almost nonexistent risks, especially considering no money is owed unless your case is successful.

Who Is Susceptible to PPI Fraud?

Borrowers with less than perfect credit are more likely to encounter unfair loans that include hidden PPI policies, and are therefore more likely to have to contract the assistance of a PPI company in reclaiming payment protection charges. Individuals that have bad or poor credit are therefore most likely to encounter blatant PPI scams that generate profit for unscrupulous, greedy, opportunistic lenders and financial institutions, which capitalize on the misfortune of borrowers that already have debt and are desperate for financial assistance. Since hindsight is 20/20, those currently considering reclaiming payment protection charges are now least susceptible to succumb to PPI fraud again.

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