Misselling of payment protection insurance

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dutchie
dutchie Posts: 87 Forumite
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in Credit cards
My gf called to activate her first ever credit card, and the guy asked her if she had any outstanding balance to transfer.

So she said no, as this was her first credit card. So he sais, oh in that case you get free payment protection.

Luckily I was on hand to tell her to ask if there was a charge when she did have a balance, which of course there was. A bit of a con telling people with no balance that payment protection is free.

I wonder how many people fall for this. It was a mayor credit card company as well.

Comments

  • johnllew
    johnllew Posts: 1,928 Forumite
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    It was a major credit card company as well.
    Could you not name & shame?
  • robbies_gal
    robbies_gal Posts: 7,895 Forumite
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    Thats really not on is it-i mean obviously we dont have to pay anything if theres nothing to protect but they dont tell new card holders its a percentage of wotever they spend after that do they
    What goes around-comes around
  • MarkyMarkD
    MarkyMarkD Posts: 9,912 Forumite
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    "Purchase protection" isn't the same as "payment protection". Purchase protection is normally free (if it's offered at all) - it means that the things you buy are covered for a short period like 90 days in case anything happens to them.

    "Payment protection" is what you are talking about, but not what I think they were talking about.
  • robbies_gal
    robbies_gal Posts: 7,895 Forumite
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    Mmm yes could be either one theyre talking about can we clarify?
    What goes around-comes around
  • dutchie
    dutchie Posts: 87 Forumite
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    They were talking about payment protection, sorry for the confusion. I'll correct my earlier the post.

    They even gave an example about how it would cover your monthly payments if you became ill or unemployed.
  • MarkyMarkD
    MarkyMarkD Posts: 9,912 Forumite
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    So, you ARE saying that they said PAYMENT protection would be free - but then admitted they were lying?

    That's appalling!
  • Shinds
    Shinds Posts: 448 Forumite
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    Name and Shame!! :o
  • dutchie
    dutchie Posts: 87 Forumite
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    I guess in a way they could claim that yes, with zero balance there is no cost, but it's a bit of a con, and I can see many people falling for it.

    It was MBNA.
  • Martinslovechild
    Martinslovechild Posts: 1,560 Forumite
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    It was MBNA.

    For MBNA, read Salesmen >:(
    Mortgage Feb 2001 - £129,000
    Mortgage July 2007 - £0
    Original Mortgage Termination Date - Nov 2018
    Mortgage Interest saved - £63790.60
    ISA Profit since Jan 1st 2015 - 98.2% (updated 1 Dec 2020)
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