Sold Loan Insurance
Loans are a risky business in the eyes of lenders and for this reason they often implement things like payment protection insurance. This would be great in theory if it were organized in such a way that it did not
often wind up costing people an arm and a leg. In addition, a lot of sold loan
insurance is sold to people who cannot use it at all. This is because these
people do not fit the right criteria. There are many conditions and regulations
placed on who can be covered by PPI and who cannot. The trouble begins when a
loan agent gives a policy of sold loan insurance to a person who is actually not
even entitled to it. In many cases this is probably done out of a simple mistake
but there are also times when the agent is fully aware of what is going on and
sells the policy anyway. What happens is that oftentimes people submit payment protection insurance claims only to find out that the underwriter covered them erroneously.
How Can You Receive Coverage By Mistake?
Unfortunately, some lenders failed to adequately train some staff so that they
didn't have the product knowledge to effectively sell the cover. It was also
noted that many lenders failed to develop eternal processes to protect customers
from mis-sale. This meant where policies were sold in error mistakes were not
always spotted. Of course, not all policies that were mis-sold were as a result
of a mistake. Some people were sold loan insurance by staff who were struggling
to reach tough sales targets or were offered significant rates of commission to
sell the cover. One important thing to remember is that if you were missold a
policy you are entitled to file a complaint and could receive payment protection refunds.
To find out more, call 0207 471 2000 to speak to a member of our team.
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