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Loans
The Competition Commission has reported that loan customers are being mis-sold and overcharged on payment protection insurance (PPI) to the tune of £1.4bn a year.
Around 6.5million new PPI policies are taken out each year, generating around £5bn in premium income. But the cover has come in for increasing criticism in recent years, after it emerged many consumers had been mis-sold policies they would never be able to claim on. Research carried out by Citizens Advice found that 85% of its clients who had tried to claim on one of the policies had been unsuccessful, despite industry claims that just 15% of claims are turned down. Data from the Competition Commission also shows that between 10-20% of people using a price comparison website to find a personal loan will choose PPI, this rises to 40% when people buy a loan direct from a provider, highlighting that PPI is rarely 'chosen', but 'sold'. Payment Protection Insurance costs on a £7,500 loan repaid over five years can be as high as £2,928. Yet similar cover from a specialist firm can cost as little as £465. The Competition Commission found that some banks are offering artificially low loan rates, only to sting customers with massive insurance protection payments. Loans do not have to be current in order to make a compensation claim, you are able to make a claim if your loan has been repaid or went into an IVA. If you don't have a copy of your old loan agreement then we can assist you in obtaining one. |