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Nearly 1.3 million cardholders in the United Kingdom mistakenly believe that taking out payment-protection insurance on their credit cards will improve their chances of being approved for those cards, suggest survey data from UK-based consumer group Which? Payment-protection insurance covers card repayments should the cardholder become seriously ill or unemployed . The consumer group based its findings on surveys conducted in June of 2,000 British consumers. Some 9.8 million consumers in the UK have credit cards with the insurance. Of those, 13%, or nearly 1.3 million, believe the insurance was mandatory or would lead to a better deal, the consumer group says. "Credit card [payment-protection insurance] is snake oil," Doug Taylor, the group's personal finance campaigner, says in a statement. The group says the insurance "often only covers the minimum amount that must be paid each month."
