Banks to refund credit card fraud insurance

UK banks are being forced to refund customers after credit card fraud insurance was found to be unnecessary.

Around 2 million customers are expected to get their money back after paying their bank for credit card insurance.

Financial regulators have ruled policies that protect cards, if they are lost or stolen, were effectively covering bank accounts twice.

Credit cards and debit cards are already covered by UK banking providers, unless there is evidence to suggest the customer was ‘negligent’ or failed to report a lost or stolen card within a certain time period.

However, many banks have been offering customers to cover their spending on cards for around £25 per month.

The Financial Conduct Authority has told customers, who wish to claim compensation, they could potentially receive more than £250 for any money that was paid from as far back as January 14 2005.

Customers who are affected by this will receive a letter from their bank on how to apply for a refund.

If you’re looking for the best financial deal, compare credit cards at Easycompare.com.

Source: Bristol Post 

Naomi Havergal
Thursday 29th January 2015

Category: Banking

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