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Archive for tag: Credit Cards and PPI

Credit Cards and PPI

Credit cards tend to be the credit facility that many people across Scotland and the UK rely on for unseen emergencies and possibly some of the more luxurious things in life. But, with various surveys now suggesting that people are increasingly using credit cards to fund the more essential aspects of life - such as the weekly shop and fuel - now is the time for every credit card holder to check their account for PPI.

Where will PPI show up on my credit card account?

It should be itemised on any credit card your statements and it should be clear. It is usually a monthly charge; likewise, if you think you've had PPI from the start of your account history, then it should also be on the original documentation too.

Some customers, however, will tell you that it was added later on and not from the start of their account.

Like bank accounts, many customers have had their credit cards for many years as they believe on both loyalty and the service they receive is good. However, one customer found that PPI was imply added to his account without his consent or permission.

This customer went on to win thousands of pounds in PPI compensation.

But, many claims management companies and financial pundits suggest that the payout on credit card PPI claims is low.

If you have one credit card and have had for a few years, and the outstanding balance on a monthly basis has been low then any PPI compensation payout will, in most cases, be of low value. The average PPI payout stands at £2,750 and you credit card PPI compensation in this case would be around this.

Where customers have secured larger PPI compensation claims on their credit cards is when they have more than one credit card and the balances each month were high. This is down to the fact that PPI on credit cards was calculated as a percentage on the amount outstanding on the credit card each month.

Different credit card providers charged different percentage rates too. Some were as high as 25% - imagine adding 25% of a £1,000 outstanding balance each month to your debt?

Making sure you get every penny of this mis-sold PPI on your credit card is important - it could wipe out your credit card debt as well as being a useful cash injection during these difficult economic times.

Contact Payment Protection Scotland to see how they can help you!