Reclaim PPI On Secured Loans
There was a time when secured loans were extremely popular with UK borrowers, but it should be noted they were even more popular with the lenders. These loans usually came with a hefty PPI policy attached, despite the fact that the policy itself was often of little or no use to the customer at all. The lenders didn’t seem to care about a mere detail like this, however.
Secured loans were often aimed at people with poor credit records, people who perhaps shouldn’t have been offered loans like this in the first place. Lenders such as First Plus, Paragon, Southern Pacific and London & Scottish were more than happy to sell their loans, in part because they were often secured on a property via what was known as a ‘second charge’.
One of the more distasteful aspects of PPI policies sold alongside secured loans was the fact that cover was so limited. In many instances, that cover only applied to the first five years of the loan, for example, even if the loan was to last for ten years or more. If you fell ill during year six, the chances are you would have had virtually no protection at all.
These days, we’ve become almost anaesthetised to the somewhat underhand tactics that were used to sell PPI, but this still shouldn’t detract from the need to seek justice. Compensation claims against organisations that sold PPI so unscrupulously are 100% justifiable, so if you had a secured loan from anyone during the lending boom you should be asking one or two questions.