|
Joe Public and his wife apply through their broker for a loan, secured on their property to consolidate some credit card debts, and to finance a house extension. The broker obtains a loan for £40,000 as requested, and offers Mortgage protection cover, to ensure the mortgage is paid if either or both are sick or in an accident, taking them off work.
The single premium may be £16,000 payable over 15 years, making for a total cost of £26,000, over the term, in addition to repaying the mortgage or 2nd charge.
The comparative cost of a stand alone monthly policy is only £22 per month or £3,960 over the term, which contrast with the extortionate cost of the loaned PPI. It matters not that you may even have claimed on this policy, because you have been poorly served, and the Lender/broker is in breach of FSA Regulations, as well as breaching your consumer rights.
Further, the broker will have received a commission on the sale of the PPI OF c£12,000 , and usually does not disclose the amount of such commission.
We will claim back the £16,000 plus interest, together with the undisclosed commission of £!2,000 plus interest at the same rate as charged under the loan or mortgage agreement.
Mr and Mrs Joe Public receive the amount recovered in full; we get your costs from the lender or broker.
|
