Reports suggest that customers who took out store cards in the last 40years ‘may have unknowingly bought payment protection insurance (PPI)’.
According to the Financial Times:
“Experts believe few customers have complained about store cards, either because they are unaware they were sold the insurance or are unsure where to file the complaint.”
It is believed that store card PPI was so easily taken out because cards were offered at the till during a quick sale or because customers did not tick an opt-out box when completing the application form.
It could be perceived that a payment for mis-sold PPI on a store card would be insignificant. But, the Financial Times also highlights the fact that:
“While the amount originally paid for PPI on a store card might have been small, years of statutory interest at 8 per cent, or 15 per cent before 1993, means consumers could be in line for billions of pounds.”
In further good news, the Mirror reports that claims previously rejected could be reconsidered:
“Shoppers who were persuaded to take out credit with major high street chains like Topshop and Debenhams before 2002 were often mis-sold PPI policies and could be owed compensation – even if they’ve already been rejected.”
www.mirror.co.uk – If you used a store card in the 1990s or 2000s you could be owed £1,000s – you just need to know exactly who to write to: 6 January 2016
www.ft.com – Store cards could be the next big PPI payout: 31 May 2016