Insurance on credit card?

HKitten

I only get online statements for my credit card and to be honest, I never look at them, because I rarely spend on it any more so I always know what it's going to say, I just check the balance regularly online.

I realised the other month though when looking at it that my minimum repayment was immediately being countered by charges. I thought it was just the interest, but when I looked, it turns out I have some sort of insurance on the card which was about £35 a month.

I rang my bank (HSBC) and got it cancelled. The girl on the phone said it was charged at a percentage of my balance? I've never heard of this before, I assumed it must have been something I'd agreed to at some point without realising what a balance I was going to incur.

When I told my boyfriend about it he said I should look into it because banks are getting a lot of stick now for miss-selling insurance. I don't think it applies to me, I don't think it's a PPI it's more like cardguard or something like that, but I thought it can't hurt to ask - is it normal to have insurance on your card where it charges you more if your balance goes up?

I'm fully prepared to be told I'm not going to be able to get any of the charges back, but if you don't ask then you never know

jonesMUFCforever

It does sound like PPI to be honest.
To pay £35 a month though suggests an outstanding balance of a few thousand at least.

What would you do if you lost your job or unable to work for a living - would you be able to make at least the minimum then?

If you think you could pay it off then cancel and go down the reclaim route - everyone else has.

HKitten

Ha! If I lost my job I'd be in trouble, but luckily I have probably the closest thing to a safe position. I do have a balance of 4k right now, due to a combination of things, mostly my partner being out of work. As soon as he gets something then we can start paying it back off immediately, for now I'm just treading water. Not having to pay the £35 a month will at least make a small difference.

I'm surprised actually, I was assuming I'd just get told I couldn't do anything. I'll go have a look at how reclaiming work then thanks.