Misrepresented Loan Insurance
Unfortunately, during the past few years, loan insurances, also called loan payment protection insurance, have been misrepresented by some banks and financial institutions. Some financial institutions will not give you a payday loan or mortgage loan or any other type of loan until you take additional coverage offered by their institution. In many cases, people are not being told about their options when getting loan insurance. Some financial institutions might not mention the opportunity to get loan insurance separately from the loan being applied for.
Fortunately, when misrepresentations occur, people can get free legal help and claim compensation, which can have lots of benefits. Usually there are a few grounds of compensation, which can legally give you benefits and repayment. The top grounds for compensation are: you were not informed that the insurance was optional for the approval of the loan; you were not told that you can get cheaper loan insurance elsewhere; you had existing injuries and illnesses; you were temporarily employed or worked less than 16 hours per week; you were not asked about existing insurances; or you were under 18 or over 65 years old.
There are other common examples of misrepresented loan insurances, which you need to be aware of. Some of these are: the small print on the contract has not been explained; there was no proper illustration and explanation of the overall cost; you were told that the loan insurance would improve your chances in getting a loan; or you were pressured by an insurance agent or team into buying the loan insurance.
If you get all the needed information and answers, you cannot get into the trouble of getting misrepresented loan insurance. So, ask around and use online guides and reviews to find out about misrepresentations. And always read through contacts when getting a loan, so as to avoid these mistakes. One thing is for sure: loan insurances are optional backups. No one can force you into getting one, and you can get a loan without any loan insurances.