A secure loan is when a borrowed amount is secured against the value of your property; most often your home. An unsecured loan is where there is no property needed to secure the loan as collateral. Unsecured loans are only backed by the creditworthiness of the person borrowing the money.
However, even for someone with an excellent credit score, this lack of property as security still represents a larger risk for the loan provider. As such, the interest rates are generally higher (sometimes significantly so) for an unsecured loan compared to a secured loan.
As we all probably know by now, PPI, otherwise known as Payment Protection Insurance, is a type of credit protection insurance which guarantees payment if the borrower is unable to pay back the loan due to unforeseen circumstances. These can include disability, sickness, job loss or even death. In other words, this insurance covers anything that could mean you are not earning money and thus cannot pay off the debt. PPI therefore acts as a security measure.
As unsecured loans are, as their name suggests, lacking in security for the lender, you may be wondering if the difference in the type of loan you’ve taken out would affect your ability to get back the money spent on this mis-sold type of insurance.
The simple answer is you can still claim for mis-sold PPI regardless of what type of loan you have taken out. The type of loan you take out may change the status of the loan’s security and the interest it garners, but it does nothing to affect the basic principle that the consumer has been mis-sold a product.
The same rules and principles apply to unsecured loans as with secured loans, so make sure to check whether you’ve been mis-sold. Stanton Fisher can help. All you have to do is fill in the form, sign and return it then we’ll commence your free PPI check.
Considering the scale of mis-sold PPI, you won’t be surprised to hear that the amount sold through unsecured loans is staggering. An exact figure is hard to come by, but with unsecured loans accounting for a significant amount of personal borrowing in the UK, it’s worth checking to see if you are owed money for mis-sold PPI on your unsecured loan.
Over £25 billion has already been paid out in total PPI compensation across the financial industry, according to FCA statistics at 9th August 2016 and there’s still plenty of people who haven’t claimed back their mis-sold PPI. So enquire with us today to see if you could be owed money.