Were You Mis-sold Loan Insurance?

Loan Insurance Complaint

Many UK lenders offer loan insurance or Payment Protection Insurance (PPI) when you take out a loan. The reality is that many loan insurance policies are not worth the paper they are written on.

According to the Citizens Advice Bureau Payment Protection Insurance (PPI) can add 20% or more to the cost of your credit agreement. It is estimated in the UK that there are over 20 million PPI policies in force generating in excess of £5 billion of premium income for insurers.

According to the Citizens Advice Bureau (CAB) many policyholders are sold insurance on the back of assurances that it will cover credit repayments in the event of financial hardship. The reality is that many consumers find it very difficult to claim on their polices because of exclusion clauses. A survey conducted by CAB found a massive 85% of people who had attempted to claim on their policies had been refused.

Use the question set below to assess whether you may have been mis-sold a loan insurance policy.

1. You were led to believe that the loan insurance policy was compulsory when you took out your loan.
2. You were self employed or unemployed when you took out the loan insurance.
3. Your age meant that the policy would never cover you in the event of a claim.
4. You were not informed of the policy exclusions that might affect you before you were sold the loan insurance.
5. You were not told you could buy loan insurance elsewhere.
6. You were not asked if you had other insurance that would cover your loan.
7. You were told that you had to take out loan insurance to get a loan.
8. You were not informed that as well as paying for the loan insurance up front you could also pay for cover on a monthly basis.
9. You paid back your loan early and the loan insurance which you paid for upfront was not refunded to you.
10. You increased your loan and the loan insurance premium was increased without your consent.
11. The terms & conditions of the loan insurance policy were not properly explained to you.
12. You were put under pressure to take out the loan insurance

If any of these points apply to you complete our Loan Insurance Complaint enquiry form and you will be contacted by a specialist adviser from Claims Financial to discuss your case.