Reclaim PPI On Credit Cards
The lending boom that got under way in the late 1980s and early 1990s is seen now as one of the main causes for the credit crunch that took hold in 2008. Millions of Britons were faced with huge mountains of debt just as the economy started to shrink, leading to so many stories of individual hardship that in many cases took years to solve, if indeed they were solved at all.
For the financial sector, the high interest rates of the late 1980s were a source of huge revenue, but when those rates started to fall the industry looked to find other streams of revenue to make up the shortfall. That stream of revenue was Payment Protection Insurance, a product that served as an extremely profitable add-on to bank loans, mortgages, store cards, catalogue accounts and credit cards.
It soon became ever more apparent that PPI was easy to sell to a customer base that welcomed the notion of more protection during a period of economic uncertainty. As this realisation took hold, the industry’s major players used increasingly aggressive tactics to make sure their customers signed up to policies, irrespective of whether they needed them or not.
If you had a credit card during this period, there’s a very good chance that it came with PPI attached. In some cases, customers weren’t even asked whether they wanted it, they were simply given it without consultation. In general, these policies were almost useless, providing very little in the way of cover yet costing a small fortune in monthly payments.
So many credit providers became fans of PPI
A number of high profile financial institutions issued credit cards during this time, as well as several newcomers to the sector. Names such as Barclaycard, Mint, Egg, Capital One, NatWest, MBNA and Lloyds were involved, as well as non-financial companies such as the AA, Shell and a host of football clubs such as Liverpool, Manchester United and Celtic.
It seemed at the time that handing out higher and higher credit limits, not to mention having several credit cards at the same time, was the way forward. We could buy the best furniture for the home, go on extended holidays to faraway destinations and purchase the latest cars in the showroom. All the while, our debts got ever higher and the PPI policies brought in yet more profit for the providers.
In the end, the credit crunch came along and we all know what happened next. Interestingly, the financial authorities rightly came to the conclusion that PPI was mis-sold on an industrial scale, often to people who had no use for the policies in the first place. The aggression and enthusiasm with which it was sold got in the way of fair play, and this is when the PPI scandal really came to the nation’s attention.
The industry has paid out billions of pounds in compensation in recent times, much of it in regard to PPI that was added on to credit card accounts. In some cases, the payouts have been substantial, because the card-holders had had sizable balances for many years. It was good to see that justice was finally being administered as the credit providers were brought to book.
If you had a credit card in the 1980s, 1990s and 2000s, there’s a good chance that you also had a PPI policy as well. Beat the Banks have won a great many compensation sums for our clients, mainly because we always look for full details of every account. Our friendly and knowledgeable team is ready and waiting to fight on your behalf for justice, so why not get in touch today?
The time to act is here now, because the PPI deadline is fast approaching. Once that day arrives no new cases will be heard, so even if you only suspect that you might have had a credit card with PPI it makes sense to at least ask the question. The underhand tactics that were used to sell PPI so aggressively were completely wrong, so together we can do something about it. To start the ball rolling, call 0800 193 1234 and let’s see what can be done. All you have to lose is a few minutes of your time.