Payment Protection Insurance Claims

There is no doubt that payment protection insurance is such a beautiful scheme in which the advantage can work on both the lender and the borrower. Of course, a borrower cannot go on with his lending business when he cannot recover his investment, as well as earn from it. Thus, he needs sufficient guarantee like a payment protection insurance that will help him cover the delinquency. A lender has the same guarantee once he fails to settle his obligation, the insurer will be at his side to reinforce him.

However, there are a lot of borrowers who would not want to forget their obligations to their lenders than those who are delinquent ones. Absconding from payment of a loan is an intolerable practice. There is adverse repercussion on someone who is a delinquent loan borrower. He may end up with a lot of embarrassment as well as the inclusion of his name in the blacklist for delinquent borrowers. So, often enough, a borrower will have to pay his loan obligation from a bank or any lending establishment.

But what happens to the money paid for the payment protection insurance when the borrower has already settled his loan yet did not receive any reimbursement? Simply, his reimbursable money becomes a mis sold payment protection insurance.