All the major credit card providers are known to have mis-sold PPI on a large scale; if you have wrongly paid for a PPI policy on top of any interest and other credit card charges, you could potentially pursue a claim against your credit card provider for all of the PPI you paid plus interest.
Credit Cards – The Lowdown
In 2011, there were 54.5 million credit cards in circulation in the UK (almost one card for every person in the country!) Purchases worth a total of £140 billion were made on credit and charge cards in 2011.
Clearly, credit cards are a popular option for many people. When customers fully understand their credit agreement and the charges linked to using their cards, there are various advantages – making regular payments on your card, for instance, can help improve your credit score. However, far too often, individuals have signed up for credit cards without properly understanding the implications, and, in many cases, they have been deliberately misled into paying for Payment Protection Insurance they didn’t want, need or know about at all.
More information on credit card PPI claims
Huge sums of money have been set aside by the banks in order to deal with the barrage of PPI claims from customers who have realised they were duped into paying for this product on top of their credit cards. If you are a victim of PPI mis-selling, you may be able to claim anything from a few hundred pounds to many thousands, depending on the length and type of any PPI agreement(s). The average is around £3,500, according to the Financial Services Authority.
Recently, there have been a number of stories in the papers that illustrate just how much people could have lost forever if the PPI scandal hadn’t been uncovered. In May 2012, news reports described how one woman made a successful claim for £50,000 for mis-sold PPI on MBNA and HSBC credit cards dating back to 1995. And in July 2012, a Hertfordshire businesswoman revealed she had received compensation of almost £65,000 for policies linked to 2 MBNA credit cards, dating back to 1996 and 2001 respectively.
How to Make a Credit Card PPI Claim
You can write to your provider using a number of letter templates you can find online. Your provider is obliged to investigate your claim in full and quickly. If you do this by yourself, you will, of course, keep 100% of the money you’re awarded.
However, if you do not feel able to deal with this directly, you do have the option of using a claims management company. If you decide to use a claims management company, however, you’d be well advised to do your homework, ensure the company is licensed and that you are familiar with their fees before agreeing to use their services.