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Credit card Payment protection insurance was, for many years, big business for banks and credit card companies. Added to thousands of customer accounts it provided a very lucrative additional revenue stream and could often prove more profitable than the interest charged on the borrowing itself. Following investigations by The Citizens Advice Bureau, The Financial Services Authority and The Office of Fair Trading regarding the mis-selling of the cover, sales of the insurance are down and there has been a massive rise in the amount of customers making PPI claims.

MBNA PPI and other forms of credit card payment protection cover are charged on a monthly basis. The cost of the cover depends on your individual balance so will often vary from month to month. Most credit card PPI policies are charged at a rate of between 79p-£1.50 per £100. If you owe £3,000 on your credit card, you may expect to pay between £23.70-£45.00 per month for the cover. It is important to remember that this figure will vary depending on whether you balance increases or decreases and that the cost of the PPI, if added to your balance, is likely to incur interest.

In addition to the relatively high cost of MSNA PPI and similar types of cover, many have also questioned how much protection the policies actually provide. A 2008 Competition Commission survey found just 11% of customers who tried to use their credit card PPI policy were successful. This statistic suggests this form of PPI may represent quite more value for money.

It can only be speculated why so many claims were rejected, but it is very likely the statistics were influenced, at least in part, by the high number of mis-sold polices - in particular, where policies were sold to customers who were unsuitable for the cover.

MBNA PPI and most other forms of PPI have a relatively high number of exemptions and are not suitable for everyone. Commonly this includes customers over the age of sixty-five and customers with pre-existing medical conditions. These kind of exemptions are not uncommon for insurance policies and are likely to be put in place because people in these categories are considered to be a higher insurance risk. In other cases customers may be unsuitable for the cover because there circumstances at the time made them ineligible for the cover – for example someone who was in full time education or unemployed and who would have no need of insurance to cover loss of employment. The issue arises here when people who were unsuitable for the cover were sold it regardless. In many cases they were unaware they could not use the policy until they tried to claim financial help and their claim was rejected.

If you were sold a policy you were ineligible to use your policy may be considered mis-sold and you may be entitled to claim compensation from your lender. To start your mis sold payment protection claim or just for more information call 0207 471 2000.

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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.

Belmont Thornton Limited is registered with the Information Commissioners Office. Registration number Z1728023.

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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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