There has recently been a shift in the number of claims that are being made from those who held a payment protection insurance policy on one or multiple credit cards.
(PRWEB) October 27, 2012
Although it is most commonly highlighted that payment protection insurance policies were mis sold with loans and finance agreements it was also added to credit cards. The latter is often overlooked and these tend to be where the highest PPI claims pay outs are currently being made.
An evaluation of the successful PPI claims which were made during this period led to PPI Claims Management discovering the high number of policies which were added to credit cards. 55% of the payment protection insurance claims that were made were on policies on credit cards, this was followed by 30% on loan agreements, 10% on finance agreements such as car finance and only 5% on mortgage repayments.
There are many reasons as to why payment protection insurance on credit cards are forming the majority of the current successful claims. Such reasons include the likes of many individuals holding more than one credit card and then on top a store card. PPI Claims Management found that the average claimant had two credit cards alongside one store card and if these three credit cards were taken out during the peak of the mis-selling payment protection insurance scandal then there is a very high chance that the individual holding the credit cards are also paying for multiple payment protection insurance policies which they can now make a claim on. 45% of all payment protection insurance policy claimants held multiple credit cards and 60% of these consumers with two or more cards had payment protection insurance added to every credit card they held.
Statistics from PPI Claims Management showed that typically the pay out on a PPI claim attached to a credit card is 25% higher than the pay outs on loans and other finance agreements. This can be put down to the fact that credit cards tend to be used for longer than the average loan term.
Payment protection insurance on credit cards can also be known as credit insurance and credit card protection. It was found that 30% of claimants were unaware that all of the aforementioned terms related to payment protection insurance and if they met the criteria they would be eligible to make a claim.
Consumer feedback in regards to credit cards and payment protection insurance all followed a similar trend with the majority simply being unaware that they had been paying for payment protection insurance for several years. The number of consumers that do not know they have PPI policies added to their credit accounts is not falling which leads to further potential growth in the number of PPI claims being made and the total cost of the payment protection insurance scandal.