Credit Cards PPI, Reclaim With Beat The Banks
Credit cards are BIG money spinners for the banks and all the other issuers. Let’s look at some of the history, the providers and why the banks love them and how they can be seriously bad for you financial wealth.
The worlds first credit card was Diners’ Club way back in 1951, although initially it was simply a charge card. It took a whole decade to become a fully fledge credit card. Some say in that case, the honour should go to American Express, with the launch of it’s travel and entertainment card in 1958.
Now as a society, we couldn’t live without them. Every single bank issues them and plus of course, you have some real favourites in there too. Here are some past and present – Egg, Capital One, Barclaycard, MBNA, Monument, Vanquis, Thomas Cook, AA, Morgan Stanley, Marbles, Goldfish, Shell, Egg, Beneficial and of course AMEX.
Just as there are many names, there are just as many interest rates on offer, some as low as single figures for an APR, should you not pay your balance off in full each month and others that could quite easily reach 30% plus territory. Especially the ones designed to “build up your credit score.”
But, if you were a bank and wanted to have some fun and make serious money into the bargain, all you really needed to do, was add Payment Protection Insurance on your credit card offering. Now you could make some really serious money!
So if you had it, or maybe you still do, what about the cost? Well back in the day, the cost was typically 65p to 75p per £100 of balance cover. More recently this has been higher and can be especially the case on “subprime cards.” So simple enough and the PPI, would cover your minimum balance payment each month and in some cases even up to 5% of the balance figure. Death cover too might also be included.
All sounds great, but there was just one tiny wee snag that you probably weren’t told about. Those premiums might have appeared reasonable enough, BUT, if you were carrying a debit balance, remember the monthly premium was added to that too, so you actually paid interest on that each month as well.
Like an example? – okay, here you go. Well, let’s say you had a £10k balance and the cost of the PPI was 75p per £100 of cover – that would set you back a handsome £75 per month, then, of course, there would be the interest cost on top. On a 20% credit card rate, This would sting you another £1.50 per month.
Let’s be generous and say the PPI protected 5% of the balance – so, in this example £76.50 gives you £500 of cover. Reasonable? Good value for money? Well, no is the short answer. Like personal loans, you had a deferred period in which you couldn’t claim. Normally this would be 31 or 61 days. Thereafter, you would normally be covered for a full 12 months. However if you compare it to a stand alone Accident, Sickness and Redundancy Policy, then immediately you can measure to some degree, the profit for the card issuer
Historically, ASU cover as a stand alone policy. That is to say, paid monthly from your account as a separate payment, might have cost £6-£7 per £100 of monthly cover. So in the above example, taking even the higher figure, this would have cost £35. So a massive 100% plus, more expensive – no wonder the bank tried to sell you a shiny new credit card, every single time you walked in to the branch, or why a Barclaycard rep seemed ready to pounce on you, every time you visited an airport.
Luckily at Beat the Banks, we know how it worked and how the rules should have been applied, every single time you were sold a credit card with PPI, but simply weren’t. All our Claims Experts are former bank lending managers and as a company we have literally hundreds of years of banking, insurance and legal experience.
If you think you have been mis-sold PPI on a credit card, the team at Beat the Banks are happy to help. You can call our office on 01382 200474 or for free on 0800 193 1234.
Credit Cards And PPI - The Facts
In October 2008, Alliance & Leicester now owned by Santander received a then-record fine of £7 million for mis-selling PPI.
n October 2008 Santander took over Alliance & Leicester, just before then-record record fine for mis-selling PPI.
All PPI claims need to be registered by August 2019, if you were mis-sold PPI by Santander you need to act now.
In 2004 Santander bought Abbey National who continued to mis-sell mortgage protection known as Paymentcare
From Our Clients
“Huge thank you to the team. After attempting to claim PPI myself and getting absolutely nowhere, I got Beat the Banks involved and ended up getting £12,000. What a result. Beat the Banks made it so easy and were committed right to the end.”Shona, Dundee
“From previous experience of PPI claim companies, I was a bit dubious if anyone could help me but I thought I would try Beat The Banks. To say I am pleased with the service and conclusion to my claim is an understatement. Beat the banks and my claim handler in particular handled all aspects of the claim from Clydesdale Bank with professionalism, courtesy, and efficiency to secure a positive result on my behalf. I would certainly recommend the services of Beat the Banks to anyone who thinks they have PPI claim, especially with the Clydesdale Bank.”Mr A McQuillian
“Down entirely to Mike’s hard work, we previously had a successful claim with Clydesdale Bank. Mike was convinced we had more loans with PPI and he was relentless in efforts to recover our paperwork from the bank. Finally, after many attempts, enough records were recovered to submit several claims. We have now received much more compensation, covering loans going back many, many years. If it had not been for Mike and the team at Beat the Banks this would never, ever have happened. Literally, all we did was sign our name and bank the cheque.”T & A, Dundee
“I was apprehensive about using a company to claim my PPI as I had previously responded to a “cold call” and was pestered with calls. I heard about Beat The Banks on a local radio station and because they were based in Scotland I felt comfortable approaching them. I have had a very positive experience with Beat The Banks. They are not pushy and answer any queries timeously. All the Agents I have spoken to were knowledgeable, polite and friendly. After the initial information gathering conversation, they understood my needs and just got on with my claim. No hassle. Even when it was clear that my claim was of a relatively low value they processed without delay. I would definitely recommend using Beat The Banks …. they put all the other companies out there to shame.”Mrs S, Falkirk
“Excellent service so helpful, I received a substantial sum back that I had no idea I was due, thank you again to Beat The Banks especially to Gary who was so helpful and efficient in every way.”Mrs M, Elgin
“We had no paperwork but £52,500 reasons to say thank you, we are now living our Spanish dream! Exceptional service.”Dave & Linda , Dundee
“Have just found out I have won all my cases with the bank, going back many years and been awarded compensation of just over £15,000!”Mr S, Dingwall
“We really appreciate the doggedness and professionalism of Jenna and the team at Beat the Banks. This is something we’d never have gotten round to doing and we’re so glad we went through the process with professionals as we’ve now had great results. Only positives have come from the experience.”Mr & Mrs M, Shetland
“From beginning to end, Beat the Banks have been very efficient. I am very pleased with the service from Jenna and the team. I am highly delighted and I have been recommending all of my friends.”Mrs C, Glasgow