# MBNA Payment Protection Insurance



## ciara_gmail (9 Jun 2006)

Does anyone out there with an MBNA credit card know exactly what the payment protection insurance taken on the card covers you for? Its 72c per €100 spent on your bill per month to avail of it. I am expecting my card in the post any day now and a girl from Customer Service phoned me yesterday to ask if I wanted this - i said yes as I've up to 30 days to cancel the policy - I couldnt really ask too much info on the phone as the girl did not have very good english. Just wondering if anyone has a simple round up of whats covered under this payment protection - thanks!


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## Resident (9 Jun 2006)

get them to send you out the terms and conditions,

I thought I was covered recently when items bought on a credit card were stolen from my car. 
The BOI site advertised covered if stolen, but when i spoke to them, they said they had to have been stolen in my presence!.

not the same as your query I know, just saying, don't depend on an overview, read the full details!


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## Berni (9 Jun 2006)

Have a read of these articles - payment protection is vastly overpriced, and has so many get out clauses for the company you'll be lucky if they pay at all.

[broken link removed]
[broken link removed]

Even if you refuse it now, be prepared to stand firm in the future too. They don't give up easily - 7 years I've been with them & saying no & they still try!

If you are concerned about needing this type of insurance, you'd be better off looking at an income protection policy.
Previous discussion on this site here http://www.askaboutmoney.com/showthread.php?t=27614, and more from the Motley Fool here [broken link removed]


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## potnoodler (10 Jun 2006)

I'd cancel the payment protection straight away and anything that a credit card company offers be it purchase insurance, useless travel accident insurance or their cc cheques books, don't take anything at face value and understand everything in their T$C


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## demoivre (13 Jun 2006)

ciara_gmail said:
			
		

> Does anyone out there with an MBNA credit card know exactly what the payment protection insurance taken on the card covers you for? Its 72c per €100 spent on your bill per month to avail of it. I am expecting my card in the post any day now and a girl from Customer Service phoned me yesterday to ask if I wanted this - i said yes as I've up to 30 days to cancel the policy - I couldnt really ask too much info on the phone as the girl did not have very good english. Just wondering if anyone has a simple round up of whats covered under this payment protection - thanks!


You will find the details in here if you then click on the type of card you are getting and then click " payment protection " up at the top. 
I agree with potnoodler though - also most of these type policies only cover the min. repayment and not the amount outstanding.


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## ciara_gmail (13 Jun 2006)

Thanks for the replies guys - I had a read of the policy and for accidental insurance or if you are hospitalised, they only pay 3% of your monthly bill up to a max of €1524! I'm phoning this evening to cancel it.


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## annR (14 Jun 2006)

Ciara

I discovered the same a few months back. 

I had initially thought it covered the outstanding amount and I think they do their best to encourage this notion.  They avoid mentioning that they only pay out the minimum amount until you dig down to the bottom of their T&Cs.

Paying the minimum amount "to enable you to keep your account open" enables them to keep charging you interest on the outstanding amount.  Nice protection for when you're in hospital.  I think it's immoral.

The sales person I spoke to had the cheek to tell me that they definitely do cover the outstanding amount if I was to die, for instance.

A


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## Thrifty (16 Jun 2006)

Read in the Irish Independant 9th May 2006 under 'your money' that a survey by the financial regulator in 2004 found that only 6% of those who claimed on these payment protection policies were sucessful. The terms and conditions when you actually start reading them rule out so many things, eg back pain etc.. that alot of people just wouldn't be covered


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## redchariot (14 Jul 2006)

I generally think that Payment Protection is not all it is cracked up to be particularly in the case of credit cards. 72c per €100 doesn't sound much but if you have a balance of say €5000 that is a €36 fee which is a rip off and also they will only pay off the minimum amount if something did happen.

I guess the question you have to ask yourself is how likely are you going to need it; are you secure in your job; are you fit and healthy?; will you get sick pay if you are out of work for some time? How badly strapped would you be if you were in a crisis for some time? I know that you could get run over by a car tomorrow and be out of work for weeks but you have to weigh up the risk.


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