People affected by York-based CPP mis-selling scandal can apply for pay-out

CPP’s offices in York

CPP’s offices in York

First published in Business News The Northern Echo: Photograph of the Author by

SEVEN million people mis-sold cover for bank and credit cards can start making claims this month as part of a £1.3bn compensation scheme, a regulator has confirmed.

Eligible customers who bought into card protection plan products from York-based CPP will begin receiving claims forms in February.

The first pay-outs are expected from late March, the Financial Conduct Authority added.

The scheme was backed by CPP customers voted in favour, and it was approved in the High Court.

CPP and 13 high street banks and card companies, through which the insurance was sold, agreed a package that will see affected policyholders receive between £100 and £300 each.

CPP was fined £10.5m in November 2012 after regulators found it gave misleading and unclear information about credit card and identity theft insurance.

The mis-selling scandal ran from 2005 to 2011, although only a proportion of the policies sold were arranged directly through CPP.

Many customers were sent new bank cards, which they had to activate by going through a CPP call centre, where they were offered insurance.

They were persuaded to spend £30 a year to insure their card, despite many already having cover provided by their bank or credit card firm.

Comments

Comments are closed on this article.

Send us your news, pictures and videos

Most read stories

Local Info

Enter your postcode, town or place name

About cookies

We want you to enjoy your visit to our website. That's why we use cookies to enhance your experience. By staying on our website you agree to our use of cookies. Find out more about the cookies we use.

I agree