Payment Protection Insurance (PPI) mis-selling saga and credit cards and store cards

by Beth Ranger on February 29, 2012

One of the principal areas of the PPI mis-selling scandal was with credit cards. Credit cards have long been considered a main cash-cow for banking institutions, with expensive short-term credit prolonged with generally unjust rates imposed for missed repayments, modified credit amounts and an array of other actions. The roll-out of PPI as one more product for credit card consumers to buy made them far more rewarding for card providers – up until the full level of the PPI mis-selling accusations were revealed.

As has since been revealed to be the case, credit card issuers had been supplying PPI coverage as compulsory, or with no prior knowledge or consent of the customer included in the credit card bundle. It resulted in additional monthly costs in the form of PPI payments, while offering not much in terms of tangible benefits. While PPI itself could be needed, almost all those affected by the PPI mis-selling situation have found it to represent poor value for money, especially when sold by the credit card supplier, and as a complicated, often unwanted item.

With regard to credit card borrowers, PPI has been commonly viewed as a waste of money. The settlement amounts on individual credit cards are usually set at manageable levels, despite the high levels of interest payable, and generally the pitfalls of temporary default that is then met, while affecting your credit rating, will not cause excessive personal hardship. It is arguable within these circumstances whether an typically sensible consumer would consider PPI to represent a valuable extra, let alone the large number of credit card consumers who were sold without their knowledge PPI, or who have been misled into believing it was an important pre-requisite for passing the credit card application.

The mis-selling of PPI policies has impacted many thousands of borrowers throughout the UK. Even though the OFT, the FSA and the High Court all have stated that PPI mis-selling is unacceptable, there still remain numerous customers with unresolved claims for PPI compensation.

If you think you may have been mis-sold PPI cover, contact us today to and one of our specialist advisers will call you back to discuss your case. Remember we offer a no win no fee service meaning if we take on your case and don’t win that it won’t cost you a penny.

For further advice on mis-sold Abbey PPI claims or any other bank or financial institutions visit PPI Claims Online

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