Paymentcare has announced the launch of the first ever stand alone loan payment protection policy (PPI) for credit cards.
The policy protects monthly repayments on credit card balances in the case of the cardholder being unable to work.
In a move that will shake up the PPI industry, Paymentcare aims to challenge the PPIs currently on offer at major credit card companies by offering a cheaper, more flexible service.
Unique features include no premiums to pay while the cardholder is in claim, and a rate of £0.65 per £100 of credit card balance. The plan also allows cardholders to cover the balance on any number of cards, from £1,000 to £5,000.
Paymentcare managing director, Shane Craig, criticised the PPI policies available from major credit card companies, labelling them ‘a con’, and pointed out that they often offer the first month of cover free, and then raise the monthly premiums.
He compared credit card PPIs with the Paymentcare’s policy, saying: “Itís simple and transparent, like all of Paymentcare’s policies. The policy holder selects the level of cover that’s closest to their average monthly outstanding balance.”
Major credit card companies have been lambasted by the Citizen’s Advice Bureau for their PPI policies which it says are expensive and mis-sold to people. It has launched an official complaint to the Office of Fair Trading (OFT).
The OFT has fast tracked the complaint and will issue a ruling within three months.
© Adfero Ltd