Just How Can Mis-sold PPI Transpire

September 23, 2011 | Author: | Posted in Personal Finance | 529 views
Mis Sold Loan Insurance

Mis Sold Loan Insurance

The good news is, for several customers, the sale of ppi was banned by the Financial Services Authority and also the government in May 2009. If you purchased one of these products, you could be eligible to a full refund with interest and compensation included

There are two types of ppi that were usually sold and these are the monthly premiums ppi and single premiums ppi. Monthly premiums are separated from the loan, can be changed effortlessly and do not increase the amount of the loan. If challenged, they would result in little financial gain. This form of ppi policies are not worth the effort to challenge. With a single premium, the number of the cost of the insurance is added to the loan. The premium can’t be changed or cancelled along with the buyer pays interest on both loan and the premium.
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Banks and lending companies who sell ppi need to tell the buyer exactly what the product is, what it covers and whether or not it’s appropriate for the individual buyer. The sales representative of the bank or lending company also needs to tell the buyer that purchase of this product isn’t compulsory. Mis-sold ppi has occurred when the sales representatives haven’t followed the guidelines in selling the product.

If the loan broker told you that in order to get the loan product you requested, you need to buy ppi from, or that the cost of the loan could be more without the insurance or that you would not necessarily get the loan without the policy, you might have grounds to make mis-sold ppi complaint. The loan broker must inquire about the other cover you might have though other insurance or through your employer. If they don’t do this or if you report that you’ve other cover and they nevertheless insist that you have to buy ppi from them, you’ve got a mis-sold ppi policy. Another ground of mis-sold ppi is when a sales representative didn’t tell you that the ppi you purchased wouldn’t cover the full term of your loan.

If you’ve been mis-sold ppi then start out the whole process of your claim now.

James David blogs about Mis-sold-ppi and other financial products for British based site www.mis-sold-ppi.com. He also tweets about unfair bank charges and the financial claims sector generally, as well as writing pieces on personal finance, house sales, repossession and business finance.

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