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Barclays Credit Card Protection

Most have us have at least one credit card and some people have several. Many of us fall into the trap of merely paying the minimum payment each month without reviewing the bill too closely. It is for this precise reason that many people are paying credit card payment protection insurance without even realising it.

Barclays Credit Card Protection and similar cover provided by other lenders is usually charged on a monthly basis and varies depending on the customers outstanding balance. A typical Credit Card PPI policy will cost around 79p per £100 outstanding on the balance. For example if you owe £8,000 on your card you may pay £63.20 per month – that is £758.40 a year.

Barclays Credit Card Protection is supposed to protect the customer if they cannot work for a period of time due to sickness, accident or redundancy. The cover is designed to step in and take over payments. Most PPI cover has a maximum payout period meaning it will cover you for only a certain amount of time – often around one year. Also, it will only usually cover the minimum debt repayments.

The issue with Barclays Credit Card Protection and similar covers is they don’t always provide the level of cover customers expect. Most policies have a high number of exemptions meaning there is a large number of circumstances that are not covered. In fact, an investigation by the Competition Commission in 2008 found that just 11% of people who try and use their credit card PPI policy are successful in doing so. With this statistic in mind it is clear to see why banks and credit card companies are so keen to sell PPI to their customers. Simply put, the cover is very profitable. The Competition Commission’s figures suggest that for every £1 spent on credit card PPI as much as £0.89 is pure profit.

The issue of mis-selling around credit card PPI first arose in 2006 after an investigation by The Office of Fair Trading and The Financial Services Authority. Many customers reported policies being added to their accounts without their knowledge or being incorrectly told taking out the cover would ensure their application was approved. Other credit card companies sold the cover to customers who were unemployed or in full-time education. PPI is designed to protect against the threat of temporary unemployment – if a customer was not employed when they took out the credit card this cover is, obviously, of little or no use to them.

If you believe you have been mis-sold a Barclays Credit Card Protection plan and you would like to make a PPI claim we can help. So far, we have helped more than 60,000 customers claim payment protection refunds. We also help customers reclaim unfair credit card charges. If you have paid a over the limit or late payment fee that you believe was unfair call us today on 0207 471 2000. We work on a No Win No Fee* basis and could settle your claim in just eight weeks.

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Belmont Thornton Limited is regulated by the Claims Management Regulator in respect of regulated claims management activities; our registration is recorded on the website number 18273

Belmont Thornton Limited is incorporated in England and Wales, Company number 6621233, whose head office at Unit B11, Kestrel Court, Harbour Road, Portishead, Bristol, BS20 7AN and registered office at Harwood House, 43 Harwood Road, London, SW6 4QP.

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* Belmont Thornton operates on a "No Win No Fee" basis. This means that there are no upfront costs to pay. Our fee only becomes payable on a successful outcome of a claim. A cancellation fee is payable if you decide that having instructed Belmont Thornton to act on your behalf, and after 14 days of signing your Letter of Authority, you do not wish to continue pursuing your claim with us. The cancellation fee is the reasonable costs incurred for the work undertaken. Please see our terms of engagement.

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