One of the most popular types of mis sold payment protection insurance which is cropping up in a huge number of claims is those PPI on credit cards. Payment protection insurance on credit cards was so frequent that some firms which only ever sold credit cards have been listed in the top 10 most complained about firms in the UK in regards to the PPI claims. This generally means that some credit card firms mis sold more PPI policies on credit cards only than high street banks and other companies which sold PPI on both loans, credit cards and even on the rare occasion, mortgages.
Up to press some of the biggest payment protection insurance policy pay outs are those which had been added on to credit cards with some claimants getting over £60,000 in a single pay out. This is due to the fact the life of a credit card is typically longer than the average term of a loan of just a few years. As well as the longer length of the policy the balance of the credit card is considered each month as a way to decide how much to charge the consumer every month. For example, for every £100 on a credit card balance usually around 70p was charged for the payment protection insurance policy. The payment was required monthly along with the credit card repayment, the fact that it was wrapped up in the minimum credit card repayment did result in many consumers not realising that they had been sold the policy. If you have a £5000 balance on a credit card which stayed the same for 5 years you would have paid £2100 on credit card payment protection insurance policy fees. You can reclaim PPI on credit cards back and then as a result get your £2100 back as well as £168 in compensation added on top. Obviously the higher your credit card balance the more you will have paid for PPI and the bigger your pay out will be. Further to this level of pay out as many people typically hold more than one pay out, double or even triple multiples of the pay out are available.
PPI on credit cards also works in the same way as payment protection insurance on a store care. If you have had a store card you can make a claim on this in the same way as your credit card and in such situations you can research making a claim back on the store card in the same way as the credit card.
While there was a huge variety of ways that PPI on credit cards was mis sold due to the online applications which were standard with some credit card providers the most often noticed reason behind the wrongly sold policy is the consumer not being aware that they were sold it.
While there has been a huge variety of ways and tactics used that made PPI on credit cards mis sold the most apparent is due to the online application process that many of the recent claimants went through. Prior to 2007 it was common practice when applying for a financial product online using a form the box to purchase payment protection insurance on your card was in fact already ticked and it was therefore necessary for the applicant to choose to opt out. Many customers missed this and remained opted in without realising what this involved and were therefore one of those who were sold a payment protection insurance policy with their credit card without realising it. This shows that it was very easy to become part of this PPI claims scandal. This applications process has now been banned and it is only possible to use an online form to apply for a credit card or loan with the PPI option clearly unmarked.
Both the high street banks such as Lloyds TSB and the dedicated credit card providers such as Capital One were responsible for mis sold PPI on credit cards and as a result if you took our a credit card in the last 19 or so years you should look into your paperwork to discover whether you were sold a policy, even without realising.
Not knowing about a policy isn’t the only way you can make a claim on your PPI on a credit card. You can be aware or have even asked for the protection provided by PPI but if the bank didn’t act upon their duty of care to ensure you were being sold the correct product for your needs and circumstances you will fall under the category of having a mis sold PPI policy added to your credit card and can then make a complaint.