Credit Cards and the Effects of a Mis Sold PPI

Payment protection insurance is the biggest financial scandal in the United Kingdom and clearly, banks made a huge profit if the bill is reaching £20 billion, roughly the price of two London Olympics in one year. PPI could be sold on your loan, mortgage or credit card.

If you were mis sold PPI on credit cards, the higher your credit limit, the higher the premium you are paying for the insurance. The same is also true if your credit card has a higher interest rate.

A mis sold PPI could possibly increase your interest rate. Bank employees may not inform you that you were issued an insurance policy for your credit card. Instead, the item would be listed with the descriptors “security”, “protection” or ASU protection.

In some cases, mis sold PPI is not listed as an item on your bank bills and instead, your monthly repayment or your interest rates increase. This is a compound interest rate and resolving this matter can be quite complicated as your loan repayments are tangled with your insurance repayments.

Mis sold PPI could give you an average of £3000 in refunds, but you could be owed more due to your compound interest rates. It would be wise to consult with a PPI claims management company to help you successfully reclaim your refunds.