Tweet
Hi folks, just thought I'd share this with you.
Chances are it's posted elsewhere, but anyway it's with regards specifically to Payment Protection Insurance when applied to loans. Credit Cards etc I believe are an entirely different problem.
However, mis-selling of PPI on personal loans can be easier to prove. An awful lot of the policies sold by banks etc. were charged as a lump sum on drawdown of the loan (I used to work in a Bank, so I know this was the case where I was anyway however I wasn't involved in lending so please don't give me a hard time on the rights and wrongs of the banks doing this).
For example client borrows £10,000, and the PPI for the term of the loan might cost for example £1,000 (doesn't matter how much)
The CCA forms will specify the amount borrowed, plus the PPI often described as an additional 'premium loan'. The fact that this was deducted as a lump sum, and interest payable on it as well means that all of these types of loans are now in breach of the new consumer credit regulations, and the cover was therefore automatically mis-sold.
If you have a loan like this, then you can save some money by putting the claim in yourself rather than have a claims management company do it for you and charge a fee. Simples......
Chances are it's posted elsewhere, but anyway it's with regards specifically to Payment Protection Insurance when applied to loans. Credit Cards etc I believe are an entirely different problem.
However, mis-selling of PPI on personal loans can be easier to prove. An awful lot of the policies sold by banks etc. were charged as a lump sum on drawdown of the loan (I used to work in a Bank, so I know this was the case where I was anyway however I wasn't involved in lending so please don't give me a hard time on the rights and wrongs of the banks doing this).
For example client borrows £10,000, and the PPI for the term of the loan might cost for example £1,000 (doesn't matter how much)
The CCA forms will specify the amount borrowed, plus the PPI often described as an additional 'premium loan'. The fact that this was deducted as a lump sum, and interest payable on it as well means that all of these types of loans are now in breach of the new consumer credit regulations, and the cover was therefore automatically mis-sold.
If you have a loan like this, then you can save some money by putting the claim in yourself rather than have a claims management company do it for you and charge a fee. Simples......
