Credit card payment protection plan

About payment protection cover

Credit card payment protection plan from The Co-operative Bank is a simple way to help meet your credit card repayments. It could cover your credit card repayments if you have an accident, become ill or suddenly find yourself unemployed through no fault of your own.

To be eligible for this cover, provided by Norwich Union, you must be:-

  • Aged 18 or over and under 65
  • A UK resident excluding the Channel Islands and the Isle of Man
  • Working 16 hours or more per week in permanent paid employment*
  • The principal card holder

Benefits include:

unemployment, accident and sickness cover Benefits start if you are unable to work for 14 days or more in a row, we will pay 1/30th of the monthly benefit for every day that you are off work, backdated to day one. The monthly benefit is 5% of the outstanding credit card balance. This will continue at monthly intervals in arrears, for every further day that you are unable to work, up to a maximum of 24 months in total for an accident or sickness claim and 18 months in total for an unemployment or carer claim.
life cover If you die, we will pay the outstanding balance at the date of your death.

The cost of your PPI is 76p per £100 of your monthly statement balance. For example, if you have an outstanding balance of £1,000 in any one month, the amount charged to your account will be £7.60 in that month. Should your borrowing remain at this level for 12 months, then the total debited to your credit card account for PPI would be £91.20 plus interest at your normal rate.

Some limitations and exclusions exist, the most significant of which are listed below. These are not all of the exclusions and limitations, and it is very important that you read the the Policy Documentation carefully, as there may be exclusions which limit your ability to claim under the policy:

Cover may be limited or there may be specific exclusions if you:-
  • Are self-employed
  • Are on a fixed-term contract
  • Are on maternity or paternal leave
  • Are currently off work sick
  • Have not been in permanent employment for 6 continuous months
  • Leave the UK to live abroad
  • Retire early from work
  • Voluntarily reduce your hours of work to less than 16 hours per week
We will not cover a claim resulting from:
  • certain pre-existing medical conditions
An unemployment claim can only be made:
  • If you have been in paid employment for a minimum of 16 hours per week continuously for 6 months
  • in the event of compulsory redundancy after the first 90 days

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You have not received any advice or recommendation on this product but have been provided with information in order to make an informed decision. It is important that you read the Policy Documentation in order to check whether the policy is suitable for your needs within the statutory 30 day cancellation period.

Paid employment is defined as paid work of at least 16 hours per week. This includes self-employed work and statutory maternity and parental leave but it does not include temporary work. Examples of temporary work include that done on a casual basis or through a recruitment agency.