PPI: The Hidden Beast of Loan Applications

Online, April 8, 2010 (Newswire.com) - As more and more claims for PPI misselling are tackled and resolved, some truly worrying stories have been exposed as to how vulnerable people were duped into taking out a product they didn't even ask for.

Loan applications are conducted with sheer force at times especially when people are desperate for money. Some are seeking swift credit on a credit card and others are simply looking for some funds to see them through.

However, millions of loans have been sold with Payment Protection Insurance-a product seemingly innocent and clever in its design but expensive and forceful in its nature. Loan advisers carried out the sale on the basis that PPI was a condition of the loan agreement. Sales pitches would almost always centre on how the credit was likely to be refused if the PPI wasn't also taken out.

In such situations, with desperate applicants eager to secure funds, it is not hard to see why many put pen to paper without even questioning what they were taking out. PPI is expensive and in many cases it was totally inappropriate as a product. The amount of people who do not even know they have been paying extra for PPI is astonishing. Millions have no idea what the product is and many others still believe that it is necessary to keep paying for it even when loans are close to being repaid.

The product itself which is designed to protect people in the event of sickness, injury or some other adverse circumstance appears to be a useful tool to accompany any loan. However, in many cases the policy exclusion clauses are such which make it impossible for a claim to succeed. Many lenders failed to issue the necessary product literature to even explain the product and its complicated features.

The amount of misselling of PPI is staggering. There appears to have been a relaxed approach when loans were sold and advisers regularly slapped on PPI as a requirement without informing applicants that PPI is optional.

The misselling has not simply been associated with car salespeople or high street brokers. Banks, building societies and reputable lenders are all culpable for the range of PPI misselling.

The important thing to remember is not to simply sit back. Anyone who has had a loan or credit card must check to see if PPI was sold to them. This can be done by checking bank statements, the policy documents or even to ask the lender to confirm what payment has been taken.

There is nothing to lose and most people have discovered that there are thousands of pounds to be regained.

JSK is a specialist on obtaining compensation for missold PPI.

For information about jskclaims please visit http://www.jskclaims.com/