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Mis-sold PPI on your Credit Card?

Posted on 20-06-2013 by

If you are currently holding a mortgage, car loan, or credit card under your name, there is great chance that you have been mis-sold Payment Protection Insurance.

It was only until recently that the terms and conditions of selling PPI policy’s changed. Originally, PPI was sold at the same time borrowers take out a loan. The function of PPI has always been to protect customers by covering monthly payments in the event that a borrower falls ill or is rendered as unable to work due to injury, disability, or loss of employment.

Unfortunately, most PPI policies did not live up to its guarantee of keeping loan payments current during times of dire need. Personnel from lending institutions failed in explaining the capacity, functions, and full extent of PPI, including the exclusions or exceptions which may render a borrower unfit to get its benefits. For instance, freelance or those who tagged themselves as self-employed or borrowers who suffer from preexisting medical conditions are denied PPI benefits, which in turn resulted in mortgage, car loans, and credit cards defaults not being covered they way they should have been. Obviously, the policies were sold to certain groups of borrowers who were ineligible for cover in the first place.

If you belong to any of these groups, or have noticed some vague terms and conditions under your contract agreement, you are most likely a victim of mis-sold PPI.

Re-check your agreement with a lender. Assess the terms and conditions and if the following words appear in your contract, there is a big chance you have been mis-sold PPI:

–          ASU

–          Loan care

–          Loan protections

–          Payment cover

–          Protection plan

You may or may not find these words on your agreement, but if you think it is likely to be a case of mis-sold PPI verify this by seeking the help of a claims management company such as PPI Claims Advice Line. You will receive the information and help you need in order to get the compensation you deserve for the mis-selling by the banks. Further information on claiming back PPI on credit cards can be found on here.

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