(PRWEB) October 29, 2012
After an evaluation of the payment protection claims which have been made through PPI Claims Management over the last three months between 17th July 2012 and 17th October 2012 it was found that the number and size of pay outs when it came to credit card payment protection insurance policies was higher on average than claims on PPI policies which were attached to loans and other finance agreements.
The average total compensation for a payment protection insurance claim pay out with PPI Claims Management during this period was £2,700. This should be compared to the average payment protection insurance pay out for those who only had PPI on a credit card was £3375 which is 25% higher. There are several reasons which can cause this and the statistics found one which was the most likely and this was the fact that a credit card has an indefinite loan term compared to the short 12-60 month loans. As payment protection insurance policies were paid for on a monthly basis they also result in paying interest on the insurance premium across the instalments. As a result this increases the cost of the PPI policy and then the PPI pay out. The highest pay out which has been recorded by PPI Claims Management was £11,000 and this was a payment protection insurance claim on a credit card.
It was also found to be 40% more likely that if a consumer held one payment protection insurance policy on a credit card they would then have further PPI claims that were eligible to be made compared to those that only had PPI attached to loans and other such credit agreements. This factor is an important influence on the amount of the pay out of a payment protection insurance claim.
A survey found that 60% of credit card holders did not know whether they held payment protection insurance on their credit cards or how to make a claim. Follow up to the survey found that as many as 40% of the participants had researched the mis sold PPI policy scandal and completed a PPI claims procedure with 35% making a successful PPI claim.