These suggestions may be an indicator for whether you are entitled to a refund, or at least partial refund. It is helpful if you can have to hand a copy of the initial agreement. If it has been lost, ask your bank for another, dated from when you took it out.
This is a template of a letter that can be used to claim a refund
These suggestions may also be relevant for other financial services.
Mis Selling Loan Insurance
1. Not told all details.
Were you told about exemptions and small print? Some of these small print may be important for your case. For example, would your long term illness be included in an insurance payout? Probably not.
2. Were You told the full cost?
Sometimes you may have been sold a monthly figure of £10 a month. But, were you told the final cost? E.g. some loan insurance protection can cost upto £3,000 for a £7,500 loan
3. Does Your Company have a record for Misselling?
If your company has been fined by the FSA for misselling loans then it is likely that your case is stronger. If it has already been proved that the company has missold to others it is likely it has missold to you. The FSA has already fined HFC and Capital One Bank
4. Were You aware it is not Necessary?
According to portal claims upto 40% of people under 31 buying PPI did not realise that the product is not essential for getting a loan.
5. Was the Salesman Pushy?
This may be hard to prove, but, if the salesman was trying very hard to sell the products without explaining detail and procedure then you might have a case for a refund
6. Single Premium Policy?
A single premium policy is where you were sold a single insurance sum at the start of the loan period, it was then paid back over a period of time. This means that you may still be in the process of repaying this cost. In the agreement you may be able to cancel and be eligible for at least part of a refund.
7. Is Your Job Excluded?
For example, if you are self employed or unemployed at the start, you would not be eligible anyway. Therefore, it is a clear case of being missold.
See also:
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[...] financial loan. For example, recently banks were found guilty of misselling loan insurance PPI. (misselling of PPI link) Also The profit margin was also extremely high, making it a very poor deal for [...]
[...] being made clear at the beginning. For example, recently UK banks were heavily criticised for misselling insurance of loans. PPI. In many instances, the true cost wasn’t spelt out; the insurance was often very [...]
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