Store cards work in the same way as credit cards and they are normally used to buy things on credit with until you either pay the card off or you pay your bill at the end of the month.
Store cards were very popular and widely sold during the 1990’s and early 2000’s by many of the large department stores and clothing retailers, and although they are still sold by some companies they were more widely sold before the early 2000’s and in the early 2000’s.
In 2011 the UK government introduced new regulations that banned commission and upfront discounts being attached to store cards to prevent shoppers falling in to debt.
As a result of this new tougher regulation store cards are not as popular these days.
Payment Protection Insurance (PPI) has been sold and added on to store cards to cover the repayments of the person who took out the store card if their personal and financial circumstances changed such as having to take time off work due to illness, an accident and in some instances unemployment.
Store Card PPI will normally only cover you for a maximum of 12 months and should you need to use the policy there are many exclusions that could prevent you from using the policy even though you may have been paying for the policy for many years.
It has been the case that store card PPI has been widely mis-sold when sold to customers who have applied to take out store cards with department stores and clothing retailers.
PPI has been sold as far back as the 1980’s and many people do not know if PPI was added on to their store card accounts.
No matter when your store card was arranged, whether or not you still have an active PPI policy on a store card, or whether or not your store card account is still active, if you have a concern about how PPI was sold to you or you are not sure if you have ever had PPI attached to your store card, then you are entitled to complain about PPI or be provided with PPI information from the store card lender or provider.
Which Store Cards Was PPI Sold On?
PPI was sold on and added on to store cards by most of the major high street retail clothing retailers and department stores. If you have taken out a store card before 2011 then there is a good chance that you may have been sold or offered to take out store card PPI.
The most popular store cards that PPI was sold and added on to are:
GE Capital Store Cards:
GE Capital which was owned by General Electric Consumer Finance UK (GECF) was the largest provider of store cards for department stores and clothing retailers in the UK up until 2008 at which point Santander bought out GE Capital’s store card business.
It has been stated in a report carried out by the Competition Commission that GE Capital was the largest provider of store cards by some margin, having a share of the store card market in the range of 50 to 70 percent.
As part of their purchase of GE Capital in 2008 Santander Bank are now responsible for PPI complaints on historic store cards that were previously provided by GE Capital or GE Money for the following department stores and clothing retailers:
Asda- Store Card
B and Q- Store Card
Bentalls- Store Card
BHS- Store Card
Burton- Store Card
Comet- Store Card
Currys- Store Card
Dixons- Store Card
Debenhams- Store Card
Dorothy Perkins- Store Card
Edge Card- Store Card
Ernest Jones- Store Card
Etam- Store Card
Evans- Store Card
Fenwick- Store Card
First National Tricity Finance- Store card
First Personal- Store Card
GE Capital- Store Card
Halfords- Store Card
Harvey Nichols- Store Card
House of Fraser- Store Card
H Samuel- Store Card
Kwik Fit- Store Card
Laura Ashley- Store Card
Miss Selfridge- Store Card
Monsoon- Store Card
Mothercare- Store Card
Newday ltd -Store Card
New Look- Store Card- Both Santander and Ikano Bank are responsible for certain New Look store cards, so if you do not have any proof of who provided the account then both Santander and Ikano Bank would need to be contacted in order to establish the details of the account and the status of any PPI
Outfit- Store Card
Paypal- Store Card
Principles- Store Card
QVC- Store Card
River Island- Store Card
Russell and Bromley- Store Card
Topshop- Store Card
Topman- Store Card
Toys R Us- Store Card
Wallis- Store Card
Wellbeck- Store Card
Marks & Spencer (M&S) Store Card PPI:
M&S are responsible for the sale of PPI and PPI complaints on M&S store cards and credit cards. In 2004 M&S contracted with HSBC who operated store cards and credit cards on their behalf as part of a joint venture arrangement between Marks & Spencer and HSBC.
John Lewis Partnership (JLP) Store Card PPI:
The John Lewis Partnership, who are also known as or referred to as JLP are responsible for the sale of PPI and PPI complaints on John Lewis store cards and credit cards. In 2004 John Lewis contracted with HSBC who operated store cards and credit cards on their behalf as part of a joint venture arrangement between John Lewis and HSBC, which is known as The John Lewis Partnership (JLP).
Argos Store Card PPI:
Argos is owned by a company called Home Retail Group. Since 2016 Home Retail Group has been owned by Sainsbury’s the British supermarket company.
Although Argos is now owned by Sainsbury’s, Argos is still responsible for the sale of PPI and PPI complaints on Argos store cards. So any Argos store card PPI complaints will need to be sent to Argos directly and not Sainsbury’s, as Argos is still trading.
Homebase Store Card PPI:
Homebase was owned by Home Retail Group until 2016. Although Homebase is no longer owned by Home Retail Group, Home Retail Group are still responsible for the sale of PPI and PPI complaints on Homebase store cards.
Ikano Bank Store card PPI:
Ikano Bank are responsible for many store card brands. Store card brands that Ikano Bank have provided accounts for and that may have had PPI are:
Ikea Home Card Ikea Home Loan Leeds and Holbeck Personal Finance Leeds and Holbeck Personal Loan Leeds Personal Loan The Austin Reed Credit Card The CC Credit Card The CC Mimosa Card The Coast Card The Habitat Card The Habitat IFC The Habitat Interest Free Loan
The Ikea Card The Karen Millen Card The Liberty Account Card The Liberty Card The Liberty Club Card The Liberty Interest Free Loan The New Look Card- Both Ikano Bank and Santander are responsible for certain New Look store cards, so if you do not have any proof of who provided the account then both Ikano Bank and Santander would need to be contacted in order to establish the details of the account and the status of any PPI The Oasis Card The Oasis VIP Card The Principles Card The Principles Visa Card Warehouse Warehouse Fashions
Please note that Ikano Bank did not engage in any sales of new PPI policies after 23rd March 2009, so only accounts that were taken out with Ikano Bank before 23rd March 2009 may have had PPI sold with or added on to them.
Creation Store Card PPI:
Creation are a provider of credit cards, store cards, and loans to UK consumers directly and through well-known high street retailers. . Creation is split in to two separate companies which are:
Creation Financial Services Limited provides and is the issuer of credit cards and store cards.
Creation Consumer Finance Limited provides personal loans.
Please note that Creation is the trading name for both Creation Financial Services Limited and Creation Consumer Finance Limited.
Creation are responsible for many store card brands and have provided store cards and finance to customers under the following brands:
Creation Financial Services Limited
Creation Consumer Finance Limited
Everton Football Club
USC- store card
West Bromwich Albion
And many more.
It is important to take note that some of the brands we have listed above that Creation have provided store cards for have also used other lenders to provide store cards to their customers too. This can cause a lot of confusion for people who have previously taken out a store card and are trying to find out if the store card had PPI.
If have taken out a store card previously and you would like to check if PPI may have been added to the account then please do not hesitate to contact us and we will be happy to assist you with checking for any PPI or processing a PPI complaint for you on your behalf.
This is not all of the lenders store cards that PPI was sold and added on to and if you require any further information on any of the above mentioned lenders or any other store card lenders/providers that you have previously taken out then please have a look through our lenders page on this website where we have provided further information on store cards that PPI was sold on and which lenders and companies are responsible for the sale of store card PPI.
How Is Store Card PPI Charged And How Much Does It Cost?
It has been identified that Store card PPI is generally more expensive than on credit cards. The reason for this is that the monthly interest rates charged by the providers of store cards are higher than on credit cards, and this in turn then increases the charges for store card PPI in terms of the actual percentage charged for PPI on store cards monthly outstanding balances.
PPI is paid for in a few different ways depending on what it was sold with. Store card PPI policies are paid for by monthly premiums in a similar way to credit card PPI and there are normally three sums that make up the total cost of a store card PPI policy:
Firstly: Store card PPI premiums are set as a percentage of the monthly outstanding balance on the Store card. Lenders typically charge 79p for PPI on every £100 of debt outstanding on a credit card, whereas on store cards it is not uncommon to have been charged up to £1.50 for PPI on every £100 of debt outstanding.
Secondly: Interest is then charged on top of the monthly Store card PPI premium at the same rate that is charged for the Store card outstanding balance if PPI had not been added.
Thirdly: Charges may be made to the Store card account if payments are missed and if PPI is present on the account at this time then the charges will be higher than if PPI was not added to the account and this can leave the account holder more in debt.
As you can see from the above information the monthly PPI premium stated by a lender for a Store card is only the initial aspect of the cost of taking PPI. This is because the monthly PPI premium, when added to the on-going balance of the Store card (which can incur interest in excess of 15% in excess of what lenders may normally charge their customers for credit card interest), increases the cost of PPI substantially.
In 2005 a report was carried out by the Citizens Advice (CAB). The report was called Protection Racket and it listed the concerns that the CAB had in relation to the sale of PPI.
The CAB Protection Racket report identified that the PPI policies offered by some of the biggest credit card lenders in the UK only offered a maximum of 12 months payments should the policy need to be used due to unemployment.
In addition to this the monthly payment made or often referred to as the monthly benefit, would only cover a maximum of 10% of the outstanding credit card balance.
This kind of information was regularly not being provided to clients when they were sold PPI on their credit cards and in a lot of instances clients actually had no idea what they were being signed up for when purchasing PPI or they didn’t even know that the PPI had been added.
Unfortunately the same issues have been identified with Store Card PPI. “Which” the consumer champions charity ran a campaign in 2007 called “Protection Money – Stake your claim”. In the Protection Money campaign Which
How Was Store Card PPI Mis-sold?
Payment Protection Insurance (PPI) has been mis-sold to millions of people but the good news is you can claim compensation If you think you’ve been mis-sold Store Card PPI. PPI was routinely mis-sold and added on to Store Cards by the seller of the PPI by them not being honest or providing the proper or correct information to the customer at the point of sale or addition of the PPI.
In a lot of instances PPI was being sold or added on to Store Cards without the seller of the PPI even checking that the PPI was suitable for the customer, that the customer was eligible for the PPI, or whether in fact the customer even required or wanted the PPI.
Store card PPI was routinely sold by the staff in department stores and clothing retailers by staff who were not from financial backgrounds and often did not understand the PPI policies that they were selling. PPI policies would be sold without any explanation of what exactly the PPI was and what it covered.
Staff were given sales targets to hit and financial incentives such as bonuses for selling the PPI on store cards. Understandably this is caused a lot of pressure and stress to both the staff involved in selling the PPI policies and the customers who were applying for the store cards, and sales of the store cards and PPI were often rushed due to the sale of them being carried out at the till or checkout in the store when the customer was paying for items that they were purchasing from the store.
PPI has several drawbacks. For a start it pays out for only a limited amount of time- usually 12 months.
On store cards and credit cards PPI often covers only the minimum amount that must be paid each month, so your balance never falls.
PPI policies also have many exclusions, so it is by no means certain that you’ll get any money even if you do make a claim on the PPI due to being off work sick or due to unemployment.
The Office of Fair Trading (OFT) have investigated PPI and they found that only 20 percent of the money collected in PPI premiums is ever paid out in claims. Compared to other types of insurance such as home insurance which pays out an average of 54 percent and car insurance which pays out an average of 82 percent.
Basically lenders and providers that have sold PPI were not giving people the basic information they need in order to make an informed decision about whether to take out the PPI policy or not and consumers were being sold PPI without understanding whether the insurance was right for them.
The most common reasons that Store Card PPI may have been mis-sold are
.You felt under pressure to take the PPI policy in order for your finance to be approved
.The policy was added to the finance without your knowledge or approval.
Your employment status made you exempt. For example you may have been self-employed or in receipt of full sick pay from your employer in the event of accident or illness.
.You were not explained the terms & conditions and was unaware of the additional cost and possible cancellation fees.
.You had a pre-existing medical condition or were registered disabled at the time the policy started.
.Your age prevented you from qualifying. For example many people were sold a PPI policy when they were already past retirement age or would have been at any stage during the repayment term.
.You had another similar or existing insurance policy. For example life insurance attached to a mortgage.
.Sometimes it was incorrectly stated that this insurance improved their chances of getting the loan or that the insurance was mandatory.
.Due to the high profitability from PPI sales, staff were targeted on sales of PPI & high commission levels were paid, which is believed to have contributed to the mis-selling of these policies.
Can I Check or Claim For Store Card PPI Even If I Do Not Remember Who The Lender Was?
Many people cannot remember the names of the lenders that they have previously taken out their finances with such as store cards, loans, credit cards, and mortgages etc. This is a common problem for people trying to check if they may have had Store Card PPI or claim for mis-sold Store Card PPI.
Due to the amount of time that may have passed since the accounts were last open or the different lenders that customers have taken finances out with over the years it can be difficult for them to recall which exact lenders that they have used.
We have successfully helped many clients in these circumstances to identify who the store card lenders were that they had taken out their previous finances with, then to check if any PPI had been added to their finances, and then to claim back for any PPI that had been identified on the finances that the client felt had been mis-sold.
There are many ways to check for any PPI that may have been added on to your finances such as checking credit agreements, your credit report, with the lender, and in your older documents that may be stored away in a loft, garage or filing cabinet.
If you are having trouble remembering the names of the companies that you have previously taken out finances with or you are unsure if you have had or do have Store Card PPI and are not sure how to proceed then we can assist you to identify your previous lenders and if you may have had PPI added to or sold with any of your finances.
How Much Is a Store Card PPI Claim Worth?
If you do have a Store Card PPI complaint that is upheld then the PPI lender or provider of the PPI should also correct and pay you back any further losses you have had as a result of PPI such as any arrears charges due to taking the card.
So in effect a successful Store Card PPI complaint offer should take in to consideration the initial monthly cost of the PPI, any interest that is charged on top of the PPI monthly payments, and any missed payments or arrears charges that may have been charged and have affected the cost of the PPI.
Once the amount of PPI owed back as part of a PPI refund is worked out and calculated an additional amount of 8% statutory interest should then be added on to the PPI refund due to make the total amount that is to be paid to the customer for mis-sold PPI.
The 8% statutory interest is for financial loss through being ``deprived`` of money that the customer should have had because the business's mistake or bad advice led them to take out an investment or account that wasn't suitable for them.
Undisclosed Commission PPI Complaints (Plevin)
The Financial Conduct Authority (FCA) have issued new rules and guidance around the high levels of commission earned by financial providers through the sale of PPI. The new FCA rules and guidance on high commissions have been in effect from 29 August 2017.
Typically a high level of PPI commission is considered to be at least 50% of the total PPI premium paid. The main basis of a PPI commissions or Plevin complaint as it is often referred to as , is that the bank or provider earned a high level of commission from the sale of PPI but did not tell you this when you bought it.
Not everyone who complains about PPI will be affected by the Plevin ruling. If you have already had a full refund of your PPI then there is no need to complain about unfair commission, as you would have already had everything back that you paid for PPI as part of your refund.
However If you have already complained about mis-sold PPI but you didn’t get a refund you might be able to complain about unfair commission if any of the following 2 reasons apply to you
1-You took out the credit the PPI was sold with (for example, a loan or credit card) on or after 6 April 2007;
2-You took out the credit the PPI was sold with before 6 April 2007, and it was still running on or after 6 April 2008.
You will need to ensure that any Store Card PPI commission’s complaints are made before 29th August 2019 as you will not be able to complain after this date. Please also note that although there is now a deadline of 29 August 2019 some people will have an earlier deadline to complain about mis-selling of PPI on Store Cards.
When Is The PPI Deadline?
The Financial Conduct Authority (FCA) who regulates the financial services industry in the UK, including banks and other providers have now set a deadline date of 29 August 2019 to complain about PPI. This means that anyone who is wishing to make a claim for mis-sold Store Card PPI will need to ensure that they have complained to the lender, bank, or PPI provider by 29 August 2019 and the complaint must be received by the firm you’re complaining to on or before 29 August 2019 or run the risk of not having the PPI complaint considered.
The Financial Conduct Authority and Store Card PPI Complaints
The Financial Conduct Authority (FCA) regulate the financial sector in the UK and they are responsible for ensuring that markets work well, fairly, competitively and they benefit customers. Most banks, credit card companies, mortgage companies, and building societies in the UK are regulated by the FCA.
The FCA was established on 1 April 2013 and took over from the previous regulator of the financial services sector in the UK, which was the Financial Services Authority (FSA). The FSA had been set up by the UK government under the Financial Services and Markets Act 2000, and they were the single regulator for financial services in the UK since December 2001 until the FSA was abolished and replaced by the FCA in April 2013.
If you have a Store Card PPI complaint against a lender or provider it is important that you understand the FCA do not investigate individual complaints so you will not be able to contact the FCA with a PPI complaint.
If you have a PPI complaint it is best to complain to the company that sold the PPI first and ask them to put things right. All companies that are regulated by the FCA must have a procedure in place for resolving disputes with their customers and respond to you within set deadlines.
All FCA regulated companies are also required to respond in writing to you just to let you know they have received your complaint, they must also respond to your complaint in writing within 8 weeks to provide you with a final response, telling you whether your PPI complaint has been successful or why they need more time to look into it.
If you are not happy with the companies final response, if they reject your complaint, or if you do not hear from them within 8 weeks, then you may be entitled to ask the Financial Ombudsman Service (FOS) to look in to the problem for you and make an unbiased decision.
Remember: You will need to complain about mis-sold Store Card PPI to the business by 29 August 2019 which is the PPI Claims Deadline. Other time limits might apply, so if you think that you have got a Store Card PPI complaint, act as soon as possible.
The Financial Ombudsman Service (FOS) and Store Card PPI Complaints
The Financial Ombudsman Service (FOS) was established in the UK in 2000 to help settle disputes between consumers and UK based financial services businesses, such as banks, building societies, insurance companies, finance companies, financial advisers and investment firms.
You must first complain to the business that you are not happy with and give them the chance to put things right before the FOS will look in to a Store Card PPI complaint, as the FOS cannot look in to Store Card PPI complaints unless you have complained to the business you are not happy with and you are not happy with the companies final response, or if they have rejected your complaint, or if you do not hear from them within 8 weeks of making your PPI complaint.
You will need to contact the FOS about a Store Card PPI complaint within six months of the business’s final response. If you do not contact the FOS about a Store Card PPI complaint within six months of the business’s final response then the FOS may not be able to look in to the complaint for you and it will be at the business’s discretion if they allow the FOS to look in to the complaint.
The Financial Services Compensation Scheme (FSCS) and Store Card PPI Complaints
The Financial Services Compensation Scheme (FSCS) was established in the UK in 2001 to protect consumers when authorised financial services firms fail. The FSCS cover business conducted by firms authorised by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA).
They may pay compensation if a firm is unable or likely to be unable to pay claims against it. This is usually because the firm has stopped trading or has been declared in default. It is important to understand that the FSCS will only pay out a maximum of 90% of a Store Card PPI claim for general insurance advice and arranging and the FSCS can pay compensation only for financial loss.
The FSCS does not cover the Channel Islands or The Isle of Man.
If you are looking to claim back Store Card PPI from a lender that has now stopped trading or has been declared in default then please do not hesitate to contact us and we will be happy to assist you. We have assisted many clients to claim PPI from the FSCS when their lender has stopped trading or has been declared in default.
Due to the PPI deadline of 29 August 2019 we are no longer taking on any new PPI Clients. We will continue to carry out work for the clients that we are already working on behalf of so that we can provide the best service possible to them.