In the 1990s store cards became incredibly popular with most major high street chains offering their own card. The cards work just like credit cards except they can only usually be used to purchase items in one particular store. These cards were often attractively offered with significant discounts if you signed up for a card on the day in store and paid using it. What many people did not realise; however, is that many of these cards had high rates of APR if the balance was not cleared immediately and that many of these cards had payment protection insurance attached.
The mis-selling of PPI is a huge national story, but many people are unaware that mis-sold store card PPI is a significant part of the problem. The real issue with store card PPI was that it was, by its very nature, sold in store by sales assistants. Many of these sales assistants had not been given adequate training and did not know enough about the cover to answer questions the customer might have or to ascertain whether something about the customer’s circumstances may make them unsuitable. Because many stores failed to give staff more than the minimum of training mis-selling occurred all too frequently.
In many cases mis-sold store card PPI also occurred where the cover was added without the customer’s knowledge. As card PPI is added on a monthly basis, many customers may not have appreciated what the charge pertained to or that the cover was optional.
The good news is that sellers have a responsibility to make customers aware of the terms and costs of cover so, if your lender failed you in this way, you have the right to register a complaint. Similarly if you were sold a policy you were unable to use or did not need you can make a claim and could receive compensation.