How carefully did you review your mortgage or personal loan documents? If you are like most people, the answer is probably not very carefully. After applying for the loan, we tend to trust the financial institution to draw up the papers accurately, keeping our best interests in mind.
The current PPI mis-selling scandal has proven that this is not always the case. Millions of consumers across the UK have been victims of mis-selling at the hands of their lenders. This has led to billions of pounds of premium payments being made by consumers who were unfairly and unethically sold policies that they did not want, did not need or did not even know about.
PPI policies are intended to protect consumers in the event that unforeseen circumstances render them unable to make their monthly loan payments. The design and intent of the coverage are not faulty. However, the manner in which many lenders have sold the coverage is quite faulty. Policies were added to loans without the consumer’s knowledge. Other consumers were coerced into adding coverage to a loan in order to get the loan approved.
It pays to check you loan documents carefully for evidence of PPI policies and their corresponding premium charges. If you were mis sold, you may have recourse against your lender.
