Card Insurance

bruxas

My sons credit card providors say they sent him a letter (not registered) saying that unless they heard from him they would take £35 for insuring his credit card. He didn't read it properly or never received it. As he has a £250 credit limit on his card he didn't want or need insurance. It took him over his credit limit and he didn't know it had happened. They then whacked charges on. Is it legal to take money out of an account without the owners permission? If he had tried to use it himself and gone over his credit limit they would have refused payment. Anyone know?

skyrider007

I take it this is a student credit card (by looking at the small credit limit)? The £35 insurance premium is excessive and unnecessary. As far as I am concerned, credit card insurance is offered as an option and is not compulsory. You should ring the bank and tell them you're not interested.

As they have already charged the premium to your son's account making it overdrawn, I suggest you go into the branch and have a formal talk with the manager. You should demand the sum to be paid back and ask them to remove any bank charges. Incorrect entries regarding going over limit or miss payment to your son's credit file if made should also be adjusted.

* Unless your son ticked the card insurance option when he got his student bank account, it would be illegal for them to automatically put him on the contract without his acknowledgement.