Time is running out for people to claim for compensation for mis-sold card protection insurance, with the deadline looming this March. The cover was designed to reimburse you for fraudulent spending on your credit or debit card but it was found to be unnecessary in the majority of cases – and it’s estimated that around two million people could have purchased the insurance. If you think you may have been one of them but have yet to make a claim, here’s what you should do.
How do I know whether I’m eligible?
If you were sold card protection insurance for your debit or credit card through Sentinel (including Sentinel Gold, Sentinel Protection and Sentinel Excel), Card Protection and Safe and Secure Plus, then you may be eligible for compensation through the AI Scheme.
The AI Scheme was set up to compensate customers who were mis-sold this product between January 2005 and August 2013. The reason why customers are eligible for compensation is that in most cases a customer’s bank or card issuer would cover them for money lost on fraudulent transactions after a card was reported lost or stolen, so the insurance wasn’t necessary.
How do I claim?
All eligible candidates should have received a claims form between August and September of last year from AI Scheme Limited. If you misplaced this, reminder letters were sent out this January so you should have received one then.
The reminder letters don’t come with another claims form, so if you’ve lost yours you’ll need to call 0800 678 1930 to request another one. The deadline to fill in your claims form and send it off is 18 March 2016. Failure to send your form back in time could mean you won’t be eligible to claim the compensation you’re due.
Once you’ve sent your form off, you should receive a written response within eight weeks telling you whether or not you’re entitled to compensation. Regardless of whether your claim is successful or not, the security product will be cancelled once you submit a claim.
Can I claim on someone else’s behalf?
If you’ve received a letter to claim for a policy holder who died, you’ll be able to claim on their behalf if you’re an executor of their estate and they passed away on or before 22nd December 2014. To make a claim, get in contact with the scheme (on 0800 678 1930) and let them know the circumstances. They’ll want evidence that you’re the executor, so make sure you have this to hand.
How much could I receive?
The amount of compensation that you receive will depend on the length of time that the product was taken out for. You should receive what you paid for the product (the average cost for the product was £25 a year, although in recent years it cost up to £39) plus interest of 8% for each year that you had the plan for. According to the Financial Conduct Authority the average compensation payment is £180 per customer.
If you believe that you have a viable claim to receive compensation but have not been contacted about how to go about this, then get in touch with the AI Scheme. Do this as soon as you can, so that you’ll have enough time before the deadline to put a claim forward.