Credit Card PPI – Payment Protection Insurance

Payment protection insurance, is also referred to as PPI, loan payment protection or credit card payment protection. PPI is an insurance policy that is designed to cover the repayments of your agreed credit card, loan or any other debt should you fall ill, be made redundant or become unable to pay back the debt for whatever reason.

When finalising a loan or credit card you may recall being given the option of buying payment protection insurance. It may have even already been applied to your loan without your knowledge which would almost certainly increase your monthly repayments.

Payment protection insurance is not at all compulsory and although most lenders may be keen for you to take out a PPI policy please note that doing so is not compulsory and you are entitled to refuse it at any time.

If you do want PPI, you will do better to take out a separate policy as tied cover is unlikely to be the cheapest.

If you believe you may have been mis-sold PPI by a loan or credit card provider you may have a case to reclaim payment protection insurance charges. In the first instance you should complain in writing to your loan and PPI provider. If the outcome is unsatisfactory, you can refer your case to the Financial Ombudsman. If you have been in financial difficulties in the past and have incurred fees for unathorised borrowing and credit card payments then you may be elligable to reclaim bank charges aswell.