Payment Protection on Credit Cards
In all the furor about mis-sold payment protection insurance, credit card PPI is
often overlooked. Although credit card PPI is often less expensive than loan PPI
the costs can significantly added up over time particularly if you have more
than one card. If payment protection on credit cards is mis-sold, therefore, the
costs can really add up.
How credit card PPI charges are applied
As a general rule, credit card payment protection charges are applied on a
monthly basis and relate to the outstanding balance on the card. The cost is
usually around 79p per Â£100 outstanding. If, for example, you owe Â£5,000 you may
pay in the region of Â£39.50 per month. This may not sound like a huge amount,
but, over the course of a year, that is Â£474.00. The good news is, if your
lenders did not fully explain the costs you may be entitled to make a payment protection claim
Mis-sold Payment Protection on Credit Cards
Most people are aware that payment protection insurance
has been widely mis-sold in the past, but many people do not realise that the
mis-selling applies to credit card PPI as well as loan and mortgage PPI. Common
ways in which policies have been mis-sold on credit cards include:
- Cover being sold to customers who are ineligible to use it.
- Cover being sold without the full terms and conditions being made clear.
- Cover being added without the customer's knowledge.
- Cover being sold to customers who may have no or little use for it.
How to Apply for Payment Protection on Credit Cards Refunds
If you have been mis-sold a card payment protection policy you have the right to
make a complaint and could receive a refund potentially worth thousands of
pounds. If you would like assistance with your claim, you can speak to a member
of our team by dialling 0207 471 2000.
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