MBNA PPI Claim
Most credit card providers also provide some kind of payment protection insurance. Payment protection covers the cardholder if they cannot work due to sickness, accident or involuntary unemployment by stepping in to take over repayments. In 2006; however, serious issues were raised about the way in which the policies were being sold. Since then MBNA PPI claims and claims against most other major lenders and many smaller brokers have grown enormously.
There are three main issues frequently highlighted regarding payment protection insurance and these are: its cost, the low rate of policy payouts and the wider issue of mis-selling.
The cost of credit card PPI is applied monthly depending on the outstanding balance of the card. It is usually applied at a rate of around 79p per £100 outstanding meaning if the customer owes £10,000 they may expect to may £79.00 per month.
If you do not feel your lender fully explained the cost of your Payment protection cover to you, you may be entitled to make an MBNA PPI claim.
Depending on the amount owed on the credit card, the cost of payment protection can be significant this fact if further highlighted when the rate of payouts for this kind of insurance is examined. A 2008 survey by The Competition Commission suggested as little as 11% of customers who tried to use their credit card PPI policy were successful in doing so. This means that almost 90% of customers may be paying for a PPI policy of limited value to them.
Part of the reason there is such a low rate of payout for this type of insurance is that most PPI policies have a high rate of exemptions. These are things that are not covered by the policies. Before you purchased your policy your lender should have made you fully aware of the terms of your policy, if this did not happen you may be able to make an MBNA PPI claim.
Perhaps the most important issue connected with these policies is regarding mis sold payment protection. In the last five years in excess of 1.5 million customers have made PPI claims in the UK most of these complaints centred on mis-selling. The definition of mis-selling is quite broad and can range from someone being sold a policy they were ineligible to use to a customer feeling pressured into taking out the cover. Some specific examples are listed below.
- The customer was incorrectly told they had to have the cover.
- The customer was led to believe taking the cover would guarantee their application was approved.
- The customer was not told they could purchase cover elsewhere.
- The customer was suffering from a pre-existing medical condition.
- The customer was retired, unemployed or in full time education.
- The customer was over the age of 65.
- The customer was self-employed.
- The customer was a serving member of the armed forces or a member of the civil service.
- The customer was entitled to sick pay from their employer.
If you would like to make an MBNA PPI claim call our team on 0207 471 2000.
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