Millions to receive compensation from CPP

CUSTOMERS mis-sold insurance for their bank and credit cards will be given a pay-out by CPP.

The compensation scheme follows the Financial Conduct Authority’s (FCA) crackdown on York-based CPP, an insurer that specialises in ID and credit card theft protection. It has now set aside £65.8m to pay for compensation claims, following a vote which saw 98% in favour of the proposed scheme, which will see customers receive on average £200 in compensation.

The scheme will now proceed to the High Court for approval, with a hearing date of Tuesday and if approval is granted, compensation payments will begin in the spring. 

Customers who, since January 14 2005, either bought or renewed the card protection product from CPP directly or via their bank or card issuer or identity protection cover from CPP over the phone are eligible for the compensation.

Brent Escott, group chief executive, said: “A key priority is to achieve the best outcome for customers affected by the historical issues in the UK business and customer approval for the scheme marks a further step forward in this process. Whilst the group will continue to face significant risks and uncertainties in the short to medium term, we continue to work closely with our stakeholders to complete the scheme and provide a stable platform from which the business can look forward.”