Possible compensation for store card holders

The recent hefty fines charged by the Financial Services Authority to GE Capital means that many people could now be entitled to refunds or compensation if they spend on one of a range of major store cards in the UK.

The finance company is behind a wide range of store cards for a number of major high street retailers, which include Miss Selfridge, Debenhams, Mothercare, Asda, and B&Q. Many people in the UK use these store cards in order to fund purchases, and many have ended up taking out payment protection insurance that was mis-sold to them, often with inadequate or false information.

The Financial Services Authority fines GE Finance after it was found to have mis-sold the payment protection insurance to people that did not need it and could never benefit from it. GE Banking was one of at least ten finance companies in the UK that could face hefty fines in relation to their inappropriate sales of PPI.

And because GE Banking is behind many of these stores cards, which have become increasingly popular forms of credit over recent years, a large number of people that were mis-sold this insurance could now make a claim.

Payment Protection Insurance is commonly referred to as simply PPI, and the purpose of this type of cover is to cover repayments on a loan or form of credit in the events that accident, illness, or injury means that you are unable to do this for a while.

The cover is provided to the policyholder for a specified period, but authorities have found that many of those being sold this cover cannot ever benefit from it and are wasting their money.

Before committing to any form of PPI, consumers are warned to check the small print and see exactly what the policy covers, and to determine whether the policy is actually going to benefit them.

Those that want to take out this form of cover should also shop around for the best deals and not just assume that the lender will find the best deal for them.

Tom Smith
19th February 2007