Over 160,000 credit card users due money back

MORE than 160,000 people are in line for compensation after being mis-sold credit card protection insurance, the Central Bank announced last night.

The cases – reported in the Irish Daily Mail last month – mean each person could qualify for between €100 and €200, bringing the total bill for the three banks involved – Bank of Ireland, MBNA and Ulster – to as much as €30million.

Central Bank Director of Consumer Protection Bernard Sheridan said: ‘It is important for consumers to carefully consider the letters they receive and decide whether they wish to submit a claim. If you purchased or renewed one of these policies after August 1, 2006, and have not received a communication, you should contact your credit card provider.’

A voluntary redress scheme was put in place in relation to Card Protection insurance provided by Homecare Insurance Ltd and bought through a number of credit card providers after a ‘request’ by the Central Bank.

It said: ‘Information provided to customers, at point of sale, advertised some benefits which were not needed, i.e. liability for unauthorised use if a card was lost/stolen. Customers did not need additional insurance for this.’

There are approximately 161,000 customers in line for compensation from the scheme.

The credit card providers have been contacting impacted customers, who should have received letters and a claim form at this stage.

The Central Bank stated: ‘ You must complete, sign and return the claim form in advance of the indicated closing date for you to be considered for redress.

‘For those customers choosing to make a claim, their policy will be cancelled.’