The card protection plan, a way to help protect card holders in case they could not make payments on their balance has become one of the biggest financial scandals in the UK. For a growing number of UK citizens, they are currently pursuing a card protection plan reclaim effort to get their money back.
The card protection plan is basically insurance that credit card holders can elect to pay to cover their card payments in case of an unexpected event. Such unexpected events include becoming laid off or unemployed suddenly, becoming injured or ill and being unable to generate income. These are the most common reasons why people cannot pay their credit card bill.
In these cases, the card protection plan steps in and makes these payments until the card holder can either recover or find new employment within a pre-set period of time. For many UK citizens, the card protection plan provides a valuable resource that can be used to protect them against unexpected events.
However, many bank and lending institutions have abused the card protection plan service in a number of ways that has led to the overcharging of billions of pounds. Such abuses have come to light and despite the sheer number of abuses recorded, it may only represent a fraction of the true size of this scandal.
Along with payment protection insurance for mortgages and loans, the card protection plan operates under the same principle of charging rates to cover these protective plans. It appears however that perhaps millions of people were overcharged or had their plans misrepresented which resulted in the loss of a significant amount of money.
For these people who have been taken advantage of, the British government has stepped in and provided a program that allows for people to file a card protection plan reclaim. These reclaim efforts do have some requirements in order to be fully recognized so that the money can be returned.
Essentially, a copy of the original credit card contract and the latest credit card bill are in order. Both of these documents will show the following;
– Actual proof of card ownership and relationship to the lender
– The information on the original contract and typical credit card bill
– The differences between both the bill and what was stated on the contract
These differences are important because they can indicate if the lender charged too much money for the card protection plan or misrepresented the terms that were stated. Furthermore, there are other items that can be essential to discovering if you are owed a card protection plan reclaim.
– Did the lender inform you that CPP was mandatory?
– Did you fall into the group that required CPP for your card?
– Were you asked in other insurance would cover your card payments?
– Were you told that CPP would improve your credit rating?
If you were told any of these things, you may be in line for a proper reclaim of the money spent for card protection. See the professionals to insure that you were not taken advantage of and if you were, that you have the proof needed to get your money back.
With the ongoing scandal about Payment Protection Insurance (PPI), other types of insurance with the same effect, but a different name or acronym have also been revealed to be part of this event. For example, credit cards are covered with PPI, but it is commonly known as CPP insurance.
What is CPP Insurance
Card Protection Plan insurance is designed to cover payments when the borrower is unable to do so because of illness, injury, unemployment or another unexpected event. CPP insurance was designed to help save money for borrowers by protecting their credit rating in case some unforeseen event caused them to miss making payments.
What is the CPP Insurance Scandal?
However, CPP insurance has turned out to be a nightmare for many who were mis-sold this type of protection or charged too much on interest rates. The government has stepped in and now has a program in place to help people recover the money that they lost.
It must be stated that not all CPP insurance coverage was bad or mis-sold, however for many it was misrepresented and only now is it coming to full light just how many people have been overcharged for this service.
How Can I Identify If I Have Been Mis-Sold CPP Insurance?
For those who believe that they might have been mis-sold CPP insurance, there are a number of things you can do in order to discover if your CPP Insurance is legit. The first step is to get a copy of the original document you signed in order to get the credit card. The next is having a copy of your monthly bill which should carry a breakdown of charges that include the CPP insurance and the interest rates.
Having this information, you can either take it to a financial professional or you can at least start the process of seeing if you were mis-sold CCP insurance. Here is what to look for when going over your original credit card loan form and monthly bill.
– Was CPP insurance included on the credit card loan agreement?
– How much CPP insurance interest are you being charged?
– Are there any differences between the loan contract and application of charges?
The first is very important because there have been some people charged for CPP insurance when they didn’t have it on their original contracts. The interest rates for CPP insurance can be pretty high if you are carrying a large balance, so if you have lowered your balance, your CPP payments should be lowered as well.
Also, were you told that CPP insurance was mandatory for your credit card? There are certain conditions that have to be met in order for CPP insurance to be mandatory.
Finally, if you notice any peculiarities with the application of CPP insurance, it is best to take your information to a financial authority and have it fully checked. While in many instances it turns out that the CPP insurance and the rates they charge are legitimate, you might also be the victim of CPP insurance fraud.