subject: Mis Sold Payment Protection Help [print this page] Greedy brokers and loan companies might finally need to cease their high pressured techniques and lies with regards to the sale of PPI. Even with all of the negative press and rules that have been added, the truth about payment protection insurance as well as the fraud that has been perpetrated amongst hundreds of thousands of unsuspecting consumers remains ongoing.
Recently a new rule has been put in to place by the Competition Commission that declares that loan providers cannot sell PPI to consumers for the minimum of seven days after which the borrowed funds has been approved. This practice obviously has the banks in an uproar. Many banking institutions will hold the loan hostage and formulate a faade that the loan can not be granted without the purchase of the payment protection insurance premium.
Roughly six years or so ago, was when the PPI misuse came to light. Since that point several financial institutions have paid steep fines for the mis-selling of these premiums. They have also had to compensate millions of dollars to claimants who proved their cases were legitimate.
The banks as well as brokers whom have been doing this mis-selling have their own reasons for doing this sort of activity. The financial institutions not only can charge you whatever they like for these premiums (these are often 2x as much as if you found it at an independent office), but then they tack it on to your loan and you also pay the finance charges on this as well as your loan. Independent brokerages on the other hand will make 50% commissions on each sale they make.
If you believe that you have been mis sold payment protection insurance you could have the opportunity to recover the premium and also the financial institutes might have to add Statutory Interest at 8% per annum, and in all actuality more could be granted. Regardless if your loan or credit card is paid off, so long as you can gather the proper paperwork, as well as details, it is possible to file a claim.
In closing, please find a short run down for the primary situations on how individuals were mis sold payment protection insurance; you were advised that to acquire a loan it was obligatory you purchased PPI, you were not advised of the exclusions on the coverage, you were sold PPI while you were self-employed, you were not employed at your current job for more than 1 year, you were not questioned of any prior medical conditions and you were not told the buying price of the premium. Invest some time into finding out if and how you can claim your money back, it will likely be worth it.
