How to Avoid Mis-selling of PPI when taking a Loan – Things to be Aware Of

How to Avoid Mis-selling of PPI when taking a Loan – Things to be Aware Of

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There are many people who do not have much idea about how the banking system works and cannot read the documents to understand its language or core message. And, this is the advantage that the bank took and mis-sold PPI to millions of people across the country. This is why, it is important for the people to know what are the tricks that the banks and their agents use to fool the customers and how to avoid being fooled into buying PPI or for that matter, just any financial tool, without your knowledge.

Before making a financial commitment and avoid being fooled into buying PPI, it is important to know a few things –

  • You need to know exactly the type of loan you want to apply for. For this, you need to check your credit score. If you have a low score, you might need to provide collateral for the loan.
  • The next thing you need to do is calculate the APR. APR includes the different additional cost on your loan like the paper cost, lender cost, set up cost, delivery cost and the PPI cost.
  • You need to be careful and ensure that you will be eligible for the PPI claim if you every need it. Learn about the different clauses of PPI before signing the documents.
  • Once you know all the facts and have spent time on reading your agreement carefully, you can sign the documents and make use of the loan that you applied for.

Knowing these few facts would ensure that you are able to identify when you are being sold something that you do not want, or if the bank or their agents are trying to sell you something out of your knowledge. As the market has got a lot of competition, the selling and marketing techniques have become a bit dicey these days. Staying in the know is important so that you do not get into the trouble and sold PPI when buying any other line of credit. Check the documents carefully and question a lot till all your doubts are clear. If you already having been mis-sold PPI, you can know the amount by using the PPI calculator online.

 

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