What Is Payment Protection on Credit Cards
If you have several credit cards and are a resident of the United Kingdom, it is likely that you have been mis-sold a payment protection insurance (PPI) policy that is attached to your credit card. You may be asking yourself "What is payment protection on credit cards?" Payment protection insurance is supposed to provide some sort of security by ensuring borrowers that their repayments will be covered in the event of unemployment, illness, or covered injuries. Unfortunately, many lenders fail to mention that individuals over the age of 65, those with pre-existing medical conditions, and individuals that already have "sick pay" through their employer, are supposed to be ineligible for a PPI policy.
What Is Payment Protection on Credit Cards so Commonly Mis-Sold for?
Payment protection on credit cards is becoming increasingly common as lenders realise that it is possible for them to earn a significant profit through PPI commissions and the higher loan amounts that are caused by the addition of PPI policy premiums. During late 2006 the Citizens Advice Bureau (CAB) filed a "super complaint" with the Office of Fair Trading, subsequently causing investigations to be conducted by the Financial Ombudsman Service (FOS) and Financial Services Authority (FSA), which revealed the extent of credit card PPI mis-selling in the UK. After this information was released hundreds of lenders and even several major financial institutions were fined millions of pounds and were forced to provide full compensation for the PPI policy payments of tens of thousands of UK residents that filed a PPI claim during the past couple years.
Reclaim Payment Protection on Credit Cards by Filing a PPI Claim
Luckily, even if you have already been denied repayment assistance by the payment protection insurance company you can still reclaim payment protection on credit cards by submitting a claim against the lender. Not only is it incredibly common to be denied PPI policy benefits, statistics indicate that less than 15% of all PPI policyholders actually receive assistance in times of need, leaving more than 85% of policyholders in a mound of accumulating debt and no help in sight. Fortunately, with the help of The PPI Claim Company you can reclaim all of the credit card charges caused by PPI, in addition to having the terms of your loan renegotiated. A payment protection claim can be defined in two ways, a claim filed against the PPI policy for repayment assistance, with about 85% being denied, and those filed against the lender that mis-sold the policy after the borrower chooses to cancel PPI, with about 90% of these claims being honoured.
How Difficult Is It to Reclaim Payment Protection on Credit Cards?
The process of reclaiming payment protection on credit cards is as simple as filling out a quick claim form and providing the basic details of your credit card and the associated PPI policy. Within a just a few days you should receive an informative claims pack in the post that will provide guidance on how to proceed with the claims process. Overall, the entire claims process usually only lasts between one to two months, and the average amount received when a client is able to reclaim payment protection on credit cards is about £2700. It is important to note that it may be challenging or impossible for a cardholder to reclaim payment protection on credit cards independently without professional assistance. What is payment protection on credit cards? It is an expense we just don't need!
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