Payment protection on MBNA credit card

A

annR

Registered User
Messages
656
I was astounded to learn yesterday that Payment protection on MBNA credit cards doesn't actually cover you for your outstanding balance should anything happen to you (well it does if you die).

They pay a monthly benefit, which on enquiry, is 3% of the outstanding balance, and they continue to charge interest. Basically the purpose of it is to keep the account open for them to charge interest!

I'm not sure of all the ins and outs of how long you have to be out of action etc but as I understood it, you have to die for them to pay your outstanding balance.
 
Are you asking a question or just pointing this issue out for others to heed your warning?
 
annR said:
I was astounded to learn yesterday that Payment protection on MBNA credit cards doesn't actually cover you for your outstanding balance should anything happen to you (well it does if you die).

They pay a monthly benefit, which on enquiry, is 3% of the outstanding balance, and they continue to charge interest. Basically the purpose of it is to keep the account open for them to charge interest!

I'm not sure of all the ins and outs of how long you have to be out of action etc but as I understood it, you have to die for them to pay your outstanding balance.
Click to expand...

and you will still need to pay the protection payment while they are paying the 3%...
 
Just wondering whether there is many other people paying this who think it protects their outstanding balance.
 
You should ask to see the insurance certificate (to see what it covers) before agreeing to take it. Usually you have to be in a full time job and not self employed or on the dole, or sick. After that there are a myriad of excuses that the insurer will use to avoid having to pay out. Always read the small print and be sure that the insurance you are getting is suitable for you. This applies to all insurances covering anything. Dont assume that because you tick the box everything is hunky dory.
 
Payment protection, the great financial scam.

See the ifsra's advice [broken link removed]
 
I wrote to MBNA over 2 months ago asking them to cancel my payment protection (thought they would need such a request in writing) 2 statements later and I am still being charged. Rang their 24 hour 7 days a week phone number only to be told that the insurance department of their business closed at one o' clock that day (to be fair it was saturday) and that it would not reopen until monday. Didn't ring back yet though. Still steaming :mad:
 
You must log in or register to reply here.
Back
Top