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Payment Protection Credit Cards

In recent years, payment protection insurance claims have increased significantly as more and more consumers realise they were sold a policy they did not want, did not need or could not use. It is estimated that there are around 20 million active payment protection policies in the UK and it is not known how many of these might have been mis-sold, but the number may be significant.

Payment Protection Credit Cards Cover

Payment protection on credit cards is applied differently to how it is applied to loans. As a general rule, loan PPI is applied as a lump sum when the loan is taken out, but credit card PPI is applied on a monthly basis and directly relates to the outstanding balance.

The cost of Payment Protection Credit Cards Cover

Credit card PPI usually costs approximately 79p for every £100 outstanding on the balance. This means that if you do not owe anything on your card there will be no charge, but if, for example, you owe £5,000 your monthly charge is likely to be around £39.50 - that's the equivilent of £474.00 a year.

The low payment out rates for Payment Protection Credit Cards Cover

In 2008, the Compensation Commission the payout rates for different forms of insurance. Their investigation revealed, shockingly, that only 11% of people who tried to use their credit card payment protection policy received a pay out. This figure suggests that almost nine in every ten credit card PPI policyholders are paying for a policy they will not be able to use.


Part of the reason why the number of claim rejections is so high for credit card PPI is because a significant number of policies have been mis-sold to customers who were unsuitable for the cover. A person may be unsuitable for PPI for a number of different reasons including if they are over the age of sixty-five, have a pre-existing medical condition or are unemployed, self-employed, retired or in full times education. If any of these situations apply to you then you may well be entitled to payment protection refunds.  Your policy may also be considered to be mis-sold if your lender failed to give you full information regarding the cover, gave you incorrect or misleading information or if the salesperson pressured you into taking out the policy.

The amount of compensation you may be entitled to receive depends on how long you have held the policy and the size of your monthly payments, but you can still make a complaint even if you have already paid off your credit card. To find out more about payment protection credit cards cover or making a claim call 0207 471 2000.

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Belmont Thornton Limited is regulated by the Financial Conduct Authority in respect of regulated claims management activities; FRN:838450

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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