People who use credit cards can find themselves in situations where they cannot repay what is owed, so end up in debt. For this reason customers would want something like payment protection insurance (PPI) to protect their repayments.
The PPI would be payable as a monthly fee on top of the charges the customers pays each month.
PPI can be a useful product if sold in the right way, however, lenders took advantage of the situation and mis-sold the policy purely for boosting their profits.
Egg is a former UK internet banking company which offered loans, mortgages and credit cards they have now been renamed Canada Square Operations.
Fines For PPI Misselling
Internet bank Egg has been fined £721,000 for mis-selling PPI to credit card customers, with the Financial Services Authority finding that there were failings in around 40 per cent of telephone sales of PPI between 2005 and 2007.In this period, over 106,000 PPI policies were sold with an average cost of £156.
What is PPI For?
If sold correctly, then PPI can be a very helpful product, ensuring that payments can be maintained in the event of sickness, injury or unemployment.
However, PPI was often mis-sold to people who didn’t want it, didn’t need it or couldn’t have used it because an exclusion clause built into the policy would have prevented them making a claim.
Were you sold PPI by Egg?
If you are one of the many people to have taken out a loan, credit card with Egg over the last decade, then you may have been sold PPI as well. It is possible that you may not have been made aware of it, due to the nature of the mis-selling scandal.
Egg Credit Card PPI
If you were one of the approximately 10 million people who took out a credit card with PPI between 1988 and 2011, you need to check if you were mis-sold the PPI.
Customers who signed up to a credit card with Egg also had PPI available to them but if the PPI was mis-sold, then compensation may be due.
However, there is a deadline from the Financial Conduct Authority of 29 August 2019. If you have a mis-selling claim with Egg about how PPI was sold to you, it must be received by Egg on or by 29 August 2019.
Egg credit cards were sold as a convenient line of credit for customers who could not or did not want to pay in full in one transaction.
Generally, many retailers made a profit on shoppers who failed to pay off the balance on the card each month, when outstanding balances would attract interest charges.
Grounds on Which Credit Card PPI May Have Been Mis-Sold By Egg
Lots of people took out PPI cover with their credit cards believing that it boosted their likelihood of being accepted, or that the policy was a necessity. There are a number of ways in which PPI may have been mis-sold:
- Quite simply, did you know you Egg had included PPI with the credit card? If you have it and the sales staff never made you aware of this, it may have been mis-sold to you.
- If you were unemployed, retired or a student, and you were advised by Egg to take out PPI, you may have been mis-sold the cover because it might not have been possible for you to ever claim on it.
- Did Egg check if your employer provides full sick pay? If you have this cover with your employer there was no need for you to have PPI as you would not struggle meeting your card payments.
- Did you already have PPI insurance in place? If so, there was no need for you to have a new policy.
- Did you feelcompelled to have PPI by Egg to boost your chances of being accepted for the credit card? If so, you may have been mis-sold. PPI is an optional extra that should have no bearing on your chances of obtaining a credit card.
- Was everything involved with the PPI explained properly to you? If you did not receive a full cost breakdown, or Egg failed to explain the exclusions to you, you may have been mis-sold.
What Do I Do To Start My PPI credit card claim with Egg?
Start by finding your paperwork with evidence of mis-sold PPI. You will need this to make a claim. If you no longer have the paperwork, don’t worry, at PPIClaims.com we can find out if you bought PPI on any previous products or accounts.
If you notice that your account had PPI attached to it, think back to when it was sold to you. Can you remember:
- When or why you agreed to it?
- If you were informed that it would be added?
If you can’t remember please don’t worry, we can check if you had PPI with Egg for free.
How Do I Start my Egg PPI Claim?
We’d like to discuss the details of your case with you, so your complaint can be lodged with Egg on your behalf as quickly as possible.
- Start your Free PPI check process by using our online form. Completing the required information will help to establish if you have held a policy with Egg; or
- Call our dedicated number for PPI claims on 0333 443 9158; or
- Complete our online claim form to start your claim.
What If my PPI Claim Has Already Been Rejected by Egg?
If you have raised a previous PPI complaint with Egg which was not upheld, you are now be entitled to raise a further complaint relating only to the commission charged under the Plevin ruling on your PPI policy, please complete our online PPI High Commission refund form.