|
HilliersHRW Solicitors LLP > Home > Legal Services > Consumer Credit Claims |
Consumer Credit |
|
Every year hundreds of thousands of individuals unwittingly pay excessive charges or rates of interest on Loan Agreements and Mortgages. People are also regularly sold related insurance products which are highly expensive and which have little or no benefit to themselves. These insurance policies have various names including Payment Protection Insurance (PPI), Payment Protection Plan (PPP) and Accident Sickness & Insurance (ASU). These premiums tend to be added to a Loan or Mortgage, which means that the individual will also pay interest for the duration of the loan on the insurance premium. It is commonplace for brokers and lenders alike to take commissions on these loans, mortgages and insurance policies. Even where an individual has taken out one of these policies directly with the lender, it is possible that the lender has paid itself commission. In the majority of cases, the person is completely unaware that a commission has even been paid. As a result of the above practices, it is apparent that a huge number of people have been mis-sold to. Are you one of them? Answer the following three questions to see whether you may have a claim… 1. Have you taken out payment protection insurance (eg. PPI; PPP; ASU) on a loan agreement?If you answered Yes, it may be that the policy was mis-sold to you. If it was, you will be able to recover the premium you have paid. This is true particularly where one of the following applies:
2. Did you pay a fee to the Lender, Broker or Financial Institution that arranged you loan or payment protection insurance?If you did not pay a fee for arranging the Loan, Mortgage or Payment Protection Insurance, it is highly likely that the broker or lender was paid a commission for arranging the policy. If you were not told that a commission was to be paid, you can claim the commission premium from the lender as the lender / broker has made a "secret" profit. On average, the commission paid is roughly 50% of the premium paid. Therefore, if the policy cost you £5,000, the commission paid is likely to be around £2,500. This sum, plus interest, will be recoverable by you in certain circumstances. Even if you were aware that a commission was to be paid but you were unaware of the amount of commission, you may still have a claim against the lender. 3. Does your loan state the total amount of interest you will pay under the Loan or Mortgage?If it does not (and) or does not contain other specific information, the Loan or Mortgage could be declared unenforceable. If the Loan was declared unenforceable, you would no longer be required to pay the instalments due under the Loan or Mortgage. What should I do now?If you think you have a claim, you can fund the claim yourself or you may have a legal expenses insurance policy that will pay our fees. Alternatively, the firm may be able to offer a “Conditional Fee Agreement”. This is better known as a “No Win No Fee Agreement”. If your case is funded through this type of Agreement, you will not be asked to pay our legal fees during the progression of the claim. If your claim is successful, you will receive 100% of your compensation and the lender will pay our fees. If your claim is unsuccessful, we will not charge you or the lender for our fees. We will be able to discuss funding options with you in more detail. Contact:
Back to top |
|||
 |