Can I be charged interest on Payment Protection Cover?

slimsia

Hi Folks

Any Advice greatly appreciated.

Earlier this year I opened a Credit Card which is used only for a Balance Transfer. At the same time I took out Payment Protection Cover.
0% interest on the balance tranfer. This rate stands til next year.

On this months statement I've been charged 20p interest.

After following this up I was told I've been charged interest on the Payment Protection Cover! It is viewed as a purchase and as my special purchase rate has expired I will now have to start paying interest until the account is settled (when I stop paying Payment Protection)!

Is the correct? Can they Charge Interest on my Payment protection Insurance?

Thanks
Slim

LeeSouthEast

If they detailed that this would happen somewhere, I believe so. (Have you still got the T&C's you signed?) If so, check the paperwork and see.

oscar52

slimsia wrote: »

Hi Folks

Any Advice greatly appreciated.

Earlier this year I opened a Credit Card which is used only for a Balance Transfer. At the same time I took out Payment Protection Cover.
0% interest on the balance tranfer. This rate stands til next year.

On this months statement I've been charged 20p interest.

After following this up I was told I've been charged interest on the Payment Protection Cover! It is viewed as a purchase and as my special purchase rate has expired I will now have to start paying interest until the account is settled (when I stop paying Payment Protection)!

Is the correct? Can they Charge Interest on my Payment protection Insurance?

Thanks
Slim

Afraid so. This is very much a trick MBNA pull. As the PPI counts as a purchase, after the promotional rate ends (usually 3 mnths for purchases) it attracts interest. As your payments are put towards the lowest interest rate first, your PPI balance will increase and you will see more interest being charged.

slimsia

Thanks folks will need to look out orginal T&C but Oscar52 basically has it down verbatim what Virgin said when I phoned them.

Its not a huge amount of money but it could have been, Its the principal.:mad:

Ah well another day done and Lessons learned!

Thanks for Info.

Slim

CLAPTON

why not look at the cost of alternative ASU (accident, sickness and unemployment) cover from independant insurance companies... it may be a lot cheaper

oscar52

slimsia wrote: »

Thanks Oscar52 basically has it down verbatim what Virgin said when I phoned them.

There would be a very good reason for that....;):D