A noticeable change can be witnessed in the area of bank loans. Gone are the days when getting approved for a loan would be an uphill task. Now-a-days, loans can be accessed in an instant. You no longer have to play the waiting game and submit innumerable documents in order to smoothly get a loan. With new banks and financial institutions making their foray into the market every now and then, getting approved for a loan has ceased to be a cause of concern. However, the picture is not as rosy as it seems. There are other problems that you can be faced with in case of these easy to get loans.
One such hazard is mis-sold ppi also known as Payment Protection Insurance. There are a number of banks and financial institutions that add ppi cover to your loan payments without even informing you or asking for your consent. Sometimes, they also go to the extent of misleading you by saying that it is a mandatory clause that has to be included in the loan scheme in order to get it approved. However, this is far from the truth. Payment protection insurance is entirely optional and you have the liberty to decide whether you want to go for it. It cannot be imposed on you. Therefore, if something similar has happened in your case, you can make mis-sold ppi claims in order to recover the amount. Such claims are quite common and most people take refuge to it in order to get back their due.
Instead of running from one place to another for making mis sold ppi claims, it is always advisable to be cautious beforehand. Most people make the mistake of overlooking the terms and conditions section in the loan agreement. They are so excited about the prospect of getting approved for the loan that they do not care to ponder over these intricacies. However, this is where they go wrong. The banks often take advantage of that and extract more money from you. That is why it is essential to go through the terms and conditions section thoroughly so that you become aware of any misappropriation that the concerned bank might be up to. If you find any anomaly, you can always check with the bank and clarify your doubts. But once you sign on the dotted line, you become vulnerable to their whims and fancies.
There is another thing to look forward to while going for a bank loan. It is the rate of interest. Here, you cannot even expect to recover the amount through mis sold ppi claims. There are some banks which pretend to charge lower rate of interests and you easily become a victim of it. However, in most cases, it is a part of an introductory offer which ceases to function after the first few months. Once the introductory period of five or six months is over, they go back to the normal rate. For this reason, you should check whether the lucrative lower interest rate is a temporary or a permanent one.