Loan PPI Routinely Missold To Millions

If you have ever taken out a loan, it is more than likely you were offered payment protection insurance (PPI). Loan PPI is designed to cover loan repayments in the event of sickness, accident or unemployment. It is an attractive proposition for many people and there isn’t anything fundamentally wrong with loan PPI.

The problem occurs when loan PPI is sold to consumers who have no real prospect of claiming on the policy. In many instances, sales staff did not perform due diligence in determining the suitability of the insurance and many cases the insurance was worthless, over-priced, and in certain situations, a condition of loan acceptance. In other words loan PPI has been mis sold.

Sales advisors were highly incentivised to promote and sell loan PPI and in high pressured selling situations they strayed from the truth.

There are millions of missold loan PPI policies in the UK generating billions of pounds of revenue for the companies that sold the policy. However, as a result of a recent high court ruling, the lenders are obliged to refund any mis sold loan PPI which is a massive victory for millions of UK consumers

Loan PPI has been missold by all high street lenders and they now have a responsibility to review all misselling claims fairly and if there has been a PPI mis-selling issue there is a obligation to place the client in the same financial position prior to have taken out the policy.

In other words, a full refund of the loan PPI premiums paid plus interest accrued on the premiums which can amount to literally thousands of pounds!