People who were mis-sold Card Protection Plan Limited (CPP) card or identity protection insurance products have less than five weeks to submit their compensation claims.
Compensation claim forms must be received no later than 30 August 2014. Forms received after this date will not be considered so it is imperative that people who wish to seek compensation do so without delay. We recommend that they post their completed claim forms well before the end of August 2014.
The redress scheme, which was agreed with 13 banks and credit card companies and CPP, is being operated as a Scheme of Arrangement under the Companies Act 2006. It was voted on by 1.3 million CPP policyholders with 98% voting in favour. The High Court then ratified the redress scheme in January of this year.
After becoming effective at the end of January 2014, eligible customers have until 30 August 2014 under the redress scheme to return to the scheme administrators their completed compensation claim forms. They must use the original form they were sent by CPP; photocopies will not be accepted.
Nearly half a million people who voted for the Scheme had not returned a completed compensation claim form in the first four months of the redress scheme, so they were sent reminder letters. Current policyholders who are yet to act will need to think carefully about whether they want to retain the insurance as a claim will cancel their existing policy.
Further information for affected customers and a detailed FAQ[1] are available on a website set up by scheme administrators.
Commenting on the progress, Clive Adamson, director of supervision at the FCA, said:
“The CPP redress scheme is drawing to a close but there is still time for people who have not claimed to do so. If you believe you were mis-sold one of these CPP protection products but did not get a letter or threw it away, contact the CPP Scheme helpline immediately and check whether you are eligible to claim.
“This simple and transparent compensation process means that customers who believe they were mis-sold the product have an opportunity to get their money back with interest, regardless of whether they bought the protection product from a bank, card provider, or CPP.”
Redress per person will depend on the length of time the customer had the insurance policy and which of the two insurance products they bought. Card protection cost about £30 a year while identity protection cost about £80 a year. The average redress payment per customer to date is £188.
CPP was fined £10.5 million for widespread mis-selling of its card and identity protection policies and ordered to pay consumer redress.
Notes for editors
- Press release: Redress package agreed for consumers mis-sold CPP insurance products[2], August 2013
- Press release: CPP redress scheme opens - customers have until end of August 2014 to claim[3], February 2014
- Press release: CPP fined £10.5 million for widespread mis-selling and agrees to pay redress[4], Nov 2012
- On the 1 April 2013 the Financial Conduct Authority (FCA) became responsible for the conduct supervision of all regulated financial firms and the prudential supervision of those not supervised by the Prudential Regulation Authority (PRA).
- The FCA has an overarching strategic objective of ensuring the relevant markets function well. To support this it has three operational objectives: to secure an appropriate degree of protection for consumers; to protect and enhance the integrity of the UK financial system; and to promote effective competition in the interests of consumers. You can find more information about the FCA, as well as how it is different to the PRA.
- Find out more information about the FCA[5].