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Cancelling Payment Protection on Credit Cards

Finding a credit card that offers fair interest rates without having good or exceptional credit can be a very difficult task nowadays, especially as global economic turmoil continues to cause an unforeseen amount of credit card debt. Sadly, much of this credit card debt is the result of hidden fees, such as those generated by mis-sold PPI (payment protection insurance) policies. When a PPI policy is mis-sold by a lender or financial institution through a loan it is usually included in the loan amount, while PPI policies that are mis-sold by credit card companies are usually paid for gradually in the form of a hidden monthly fee.

Why Do Lenders Mis-Sell PPI?

Lenders mis-sell PPI policies in order to earn a commission from the insurance company, while also boosting the overall loan amount to increase the amount of interest earned throughout the loan duration. Since most lenders bundle the cost of a PPI policy with the amount of the loan as a one-time premium, the borrower is forced to pay for the policy, along with the loan, via their gradual monthly repayments. Thus, the lender not only receives a commission for selling an insurance policy, they also increase their loan amounts and subsequent interest earned. In the case of a credit card company, a mis-sold PPI policy is just one more type of fee that can boost annual profits by tens of millions of pounds. Consider the following information about cancelling payment protection on credit cards.

Why Aren't More People Cancelling Payment Protection on Credit Cards?

There are several ways a borrower can be deceived into paying for a PPI policy. First, the lender can persuade them into believing that the policy is mandatory, or that it may increase the chances of loan or credit card approval. Alternatively, the credit card company can disguise a PPI policy by referring to it as loan protection insurance, payment coverage, or a long list of other synonymous terms. With more than 40,000 people reclaiming PPI payments in 2010 alone, it is safe to say that there are many people cancelling payment protection on credit cards. Surprisingly, the majority of people that attempted to reclaim PPI payments during the past six years have been successful, especially those with the assistance of the PPI claim specialist.

Is It Possible to Reverse Bank Charges after Cancelling Payment Protection on Credit Cards?

Many cardholders utilize automatic online payments by attaching their bank accounts with their credit card accounts to streamline the process. Unfortunately, this can result in unwanted PPI bank charges that often go unnoticed on monthly statements. Luckily, not only is it possible to reverse bank charges after cancelling payment protection on credit cards, this form of compensation may be the most expeditious. After seeking the assistance of a PPI claims specialist it should only take a couple of weeks to have all of the bank charges reversed into your bank account. A good PPI claim company will contact card issuers directly to facilitate the process of cancelling payment protection on credit cards.

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