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Misleading PPI in credit card sector

Thu, 11 Sep 2008

According to consumer watchdog Which?, thousands of credit card borrowers could be being misled regarding payment protection insurance .

Customers may have taken out payment protection insurance on their credit card in order to speed their application through, according to new research, whilst it actually makes no difference.

Which? research indicates that just over 9.8 million people have credit cards with PPI policies. Some 13 per cent included PPI thinking it was required or would increase their chances of successfully getting a credit card .

28 per cent of those surveyed said that their credit card company had recommended the cover. PPI is often sold alongside a variety of financial services products to cover repayment, but the insurance is often mis-sold and hard to claim on.

Speaking on behalf of Which?, Doug Taylor reportedly commented: "Credit card PPI is a modern day snake oil - it’s a useless product, expensive and poorly designed. As the credit crunch continues to take hold, people want to be protected and have peace of mind, but credit card PPI, like a house of cards, won’t give you the support you need."
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