Mortgage Payment Protection

Missold Payment Protection Insurance

It's not uncommon for you to purchase a payment protection plan for your loan, credit card, or debt consolidation, but it's actually poor judgement, considering it's typically included automatically with your monthly repayment fees. Lenders and creditors will get you with missold payment protection insurance.

Typically, miss sold payment protection insurance will add at least 20%, if not much more, to the overall cost of your credit agreement, but it's purchased under the impression that it's going to help you in case you run into financial hardship.

The reality on these missold payment protection insurance, is that even if you purchase the extra insurance, it can be very difficult to collect on the policy due to exclusion clauses. Actually, about 85% of people who purchased missold payment protection insurance and tried to claim on the policy were refused, and of course by that point if was far too late to request a payment protection policy refund.

There are actually strict rules that are supposed to prevent missold payment protection insurance. All financial institutions are supposed to abide by these rules, but they are typically pretty complicated and complex. So, it still happens...

There are many different reasons and bad excuses that creditors use to convince you that you need the extra policy, and there are just as many reasons as to why you were missold payment protection insurance.

Some of the reasons that you were missold payment protection insurance may include:

1. You have to have the payment protection insurance in order to get the loan.

2. A pushy salesperson pressured you into purchasing the payment protection insurance.

3. You were under the impression, by the salesperson or creditor, that the payment protection insurance would improve your chances of a secure loan.

4. The creditor or salesperson didn't fully explain to you the fine print of the loan.

5. The creditor or salesperson didn't fully explain to you the cost of the payment protection insurance.

6. The creditor or salesperson failed to tell you that payment protection insurance was already included in your loan, credit card, or other financial product.

There are many other reasons as to why you were missold payment protection insurance, and if you think you have purchased a policy that you don't need or is costing you more in the long-run compared to the benefits that you are, or aren't receiving, then you should call your creditor or financial institution and attempt cancelling your missold payment protection insurance.

Never think that you're alone in this situation, call an adviser the minute you think you've been missold payment protection insurance, so that you can potentially reclaim some of the money you've paid.