Credit Card PPI Can Really Add Up!

Payment Protection Insurance has been sold with many different financial products. Credit card PPI is one of the most widely sold payment protection insurance policy and as a result their are millions of instances of credit card PPI mis selling.

Credit card PPI is designed to cover the credit card repayments in situations of job loss, accident or sickness. Fundamentally, it is a good idea to have income protection. However, im many cases credit card was mis sold at the point of sale. It is often a worthless policy and sales staff wer highly incentivised by the credit card providers to sell the policy without performing due diligence on the suitability of the product.

Credit card PPI is usually a monthly payment, the amount is often a percentage of the monthly balance of the borrowings on the card. The higher the balance, the higher the amount of PPI premium. It can be identified on credit card statements as an insurance payment and is debited at the time the monthly statement is produced.

As a result of the high court ruling in favour of consumers against the banks, lenders are now obliged to evaluate all instances if credit card PPI sales and if a policy has been mis sold then a refund is issued.

The refund can be surprisingly high as the premiums are returned plus interest on the premiums and also statuatory interest at the prevailing rate. Since credit card providers wrer charging extremely high levels of interest, the interest paid on premiums over a long period of time can be very high.

Credit card PPI can be claimed back from existing and previous credit card agreements, even if the credit card has been paid off and no longer exists.

Credit card PPI has been sold in many circumstances. These include policies sold to the self-employed, retired, those with a existing medical condition, the armed forces, NHS workers and also the policy is missold if the client was not informed that alternative options were available at the time of purchase.

If you have ever had a credit card then it is highly recommended you check whether you have been missold credit card PPI as you could be owed thousands without realising!