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Archive for tag: Credit Card PPI

Credit Card PPI – Learning from Past Claims

Customers have been claiming back thousands of pounds in compensation for mis-sold PPI. And with the PPI deadline set for August 2019, it is important that if you intend making a claim that you do so. Check everything from loans to catalogue accounts but especially credit cards. And here's why…

Credit Card

Back in March 2012, a father of two from Essex spent 16 months locking horns with Barclaycard to reclaim his PPI premiums. He had two credit card accounts over for a long period of time. PPI on credit cards was calculated as a % of the amount outstanding each month - so the more your owed, the more PPI you paid. As a result, credit card companies are some of the lenders who have paid out some of the largest PPI compensation claims.

In this case, the PPI policy was added to his account without his permission. This is a fairly typical example when it comes to PPI and credit card accounts. It is one of the main reasons why PPI payments are at a record high - banks and lenders simply added the PPI without the knowledge of the account holder.

First Claim Unsuccessful

This customer attempt to reclaim the money back in mid 2010, was unsuccessful with Barclaycard rejecting his claim. But he was not put off, convinced he was right and that he was owed money. Not only was the policy added without his consent or knowledge, he had ample cover with other insurance policies.

His first step was to contact the claim management company he had been workingwith for free advice and help. They knew his case well and they too, felt that his case had been unfairly dismissed. They advised their client to lodge his complaint with the Financial Ombudsman. They can do this on his behalf, which they did, but only after attempting to get the claim paid out with Barclay card a few more time.

After letters and phone calls this customer by early 2012, was in receipt of a cheque for£82,000 in PPI compensation. It took some time because the Financial Ombudsman is dealing with thousands of cases with the average wait time now around 12 months (unless you can prove significant financial hardship and they will look at your case sooner).

3 Important Lessons

  1. Don't be put off by a refusalfrom your bank or lender - seek help from your claim management team, if you have one, or talk with the Financial Ombudsman for advice.
  2. Be realistic about the amount of compensationyou could claim back - there are amazing stories of huge pay outs but compensation as high as this customers' tend to be the exception rather than the norm. that said, until you launch your claim for PPI compensation, who know how much you are entitled to?
  3. This is your money- don't be put off making a claim.

For a no obligation chat, call us today and find out how much you could claim back in PPI compensation.