Credit Cards and your PPI claim
Payment protection insurance on credit cards is a common thing in the UK. The insurance cover is meant to cushion consumers in case they cannot meet the payments for money borrowed on credit cards. It is a precautionary measure that will allow for the insurer to make payments on behalf of the customer in any eventualities that might disallow payments from being made. Such eventualities include illness, loss of income, and disability, among others.
Who is viable for PPI credit card?
Anyone who owns a credit card and is employed is viable for the PPI Credit card. However, not everyone is viable for the insurance cover. Self-employers, retirees, students and unemployed persons do not qualify for the cover. Civil servants such as police officers, army officers, nurses, doctors and other public servants are also not viable.
How much do you need to pay for PPI Credit card?
The amount payable for the PPI credit card is different from the other covers such as insurance and mortgages. In PPI credit card, the amount payable is dependent on the amount the consumer has borrowed. Thus, the amount the consumer has to pay fluctuates with time. In many cases, the amount payable is included in the monies the consumer pays to the credit card company.
Can PPI Credit card be mis-sold?
Just like any other PPI cover, PPI credit card can be mis-sold. It is actually the most common type of mis-sold PPI. If for example you are in any of the categories mentioned above such as a civil service employee or a student or any of the rest, you cannot make a PPI credit card claim. This means that the cover was mis-sold to you. If the cover was made mandatory when you are applying for the credit card, or no sufficient information was provided to you or you even have no knowledge of possessing PPI credit card, then the cover was mis-sold to you.
How to deal with mis-sold PPI credit card
Once you realize that the insurance cover was mis-sold to you, make a formal complaint with your credit card service provider. You can claim compensation. If the service provider does not take action within at least eight weeks, then contact the financial ombudsman for intervention. However, ensure that you attach copies of all relevant supporting documents. It is also vital to remember that the claim can only be made if the cover was mis-sold to you in the last six years or you found out of the situation three years ago.
PPI credit card aims to protect the consumer. It is an optional service and consumers should not be made to apply for the service when applying for credit cards. However, it is a common occurrence to find that card companies attach this insurance cover to the card leaving the consumer no choice at all. The cover is not obvious to consumers and many go on with paying for it unknowingly. To avoid this, be aware of any charges that seem suspicious on your card.