Finance Blog

People who are desperate to get their hands on borrowed cash will often do anything to make the process faster; even if it means taking out a loan protection insurance that is totally unnecessary.  This is the Payment Protection Insurance (PPI) that lenders offer borrowers as an additional service.  Although this may not be totally a bad thing, many lenders have been found guilty of mis-sold loan protection because of the means they resort to in order to sell one.

How do you determine if you are a victim of mis-sold loan protection?  For one thing, your current employment status can be the basis of whether you are qualified for the loan or not.  Retired individuals are exempted from buying PPI but not all of them are aware of this fact.  When a lender insists on selling one to a retiree, the transaction is considered null and void from the start.  Hence, the lender has mis-sold loan protection.

Another way is to check the policy that you are holding.  A closer look can reveal the amount that you are actually paying for the loan and the amount charged for the insurance.  Most lenders charge exorbitant PPI fees.  They justify this act on the reason that the borrower is high risk.  A mis-sold loan protection can be avoided if you keep your guard up.  It pays to be vigilant and in-the-know when it comes to finances.

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