How to claim PPI compensation on CREDIT CARDS
Payment protection insurance (PPI) was a financial product that was cold alongside loans, credit cards and so on. The product has since fallen out of favour and no surprise when you consider how expensive it was for the scant cover it provided, as well as the way in which it was sold.
As a result, thousands of customers are now claiming back their money from banks and lenders. There is one type of credit facility, however, that some people may not think to check and that is their credit cards.
Credit cards present a unique situation, in some ways. Many people applied for credit cards online but unfortunately, the option to opt out of PPI was ‘hidden’ at the bottom of some very long fine print.
This meant that many customers did not realise that they had inadvertently bought an insurance policy that in many cases, offered them no cover at all. This is because they were not eligible in some cases to claim under the policy – for example, those people with a credit card who were self-employed would not have been able to make a claim.
What did change as a result of this PPI mis-selling scandal is that customers should opt in to an insurance policy rather than the company assuming they have opted in.
Claiming your money back
Claiming back your premiums, as well as any costs or fees incurred on a credit card account is now something that every credit card holder with PPI should look to do. Just like other PPI compensation claims, the majority of credit card holders with PPI will be due to compensation, simply because they did not realise that had bought the policy.
However, herein lays the issue as many people will not be aware that they have the policy and thus they are entitled to make a claim.
That said, many banks and lenders were writing to customers to inform them they had a PPI policy and they may be entitled to claim. If you have received such a letter, it is important that you return your form to your bank or credit card company as there may in fact, be a pot of cash with your name on it.
I think my credit card company has been bought by another bank?
This is a common occurrence in the banking sector and thus, you may be unaware of who or where to send your claim.
Payment Protection Scotland can help you by submitting your claim on your behalf. There is a fee for this service. Call us today to find out more.