The Role of Payment Protection Insurance Providers in Mis Sold PPI

Posted by on July 4th 2011 @ 12:31 pm

Although it doesn’t sound logical, payment protection insurance providers are not the ones being faulted for mis sold Welcome PPI. Unless you were mis sold Welcome PPI claims directly from the insurance company it is the lender who mis sold the product to you. The reason for this is because of the big fat profit they make off each and every sale. Incentivised sales are rampant among lenders because of the cash cow they have grabbed hold of. Every time they sell a policy they are making anywhere from 13% to 56% of the amount being financed PLUS interest that compounds each and every month. You can see why lenders are selling the product and why they are the ones you should go after for a refund. Payment protection insurance providers simply underwrite the policy.

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