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Warning over credit card insurance

Warning over credit card insurance

Category: Credit cards

Updated: 11/12/2008
First Published: 11/12/2008

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Consumers have been advised to check payment protection insurance (PPI) policies that have been sold alongside credit cards.

Which?, the campaign group, issued the warning after one provider was fined for its practices.

The Financial Services Authority (FSA) revealed that Egg had directed staff to use techniques designed to persuade credit card customers that did not want the cover to take it.

And it was ordered to pay £721,000 after some customers were found to have had PPI applied without consent.

Margaret Cole, director of enforcement at the FSA, noted that Egg has committed to compensating customers, with some set to be offered a full refund.

She added: "All firms must ensure that customers are treated fairly when selling PPI and if a customer does not want PPI, they should not be pressured into taking it."

A zero per cent balance credit card was launched by Saga earlier this week.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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