Credit card applicants ''mis-sold PPI''

By MoneyhighStreet Staff. Published on September 10, 2008 This post currently has no comments.

UK consumers have been mis-sold payment protection insurance (PPI) when applying for credit cards, according to data from Which?.

Just under ten million Britons have been sold PPI alongside their credit cards, but as many of 13 per cent wrongly believe that it supported their application.

PPI is sold alongside a range of financial products, including mortgages and loans, and covers those who may struggle to meet repayments if they fall ill or lose their job.

However, Which? claimed that PPI does not offer consumers the support they need for their credit cards.

Despite this, 28 per cent of Britons surveyed claim that PPI was recommended to them for their credit card by their provider.

Doug Taylor, personal finance campaigner at Which?, likened the mis-selling of PPI cover to "modern day snake oil".

He said: "It''s a useless product, expensive and poorly designed.

"No one should have to take out PPI on their credit card. Credit card PPI is the elephant in the room that can no longer be ignored."