Another Financial Claims Industry Being Established Which Will Dwarf PPI Claims
I wrote last week that credit card insurance company CPP have been tagged for mis-selling and additionally ordered to pay back millions in PPI claim funds. FSA named CPP’s mis-selling a “serious offence” and ordered them to repay £14.5 million to hundreds of thousands of consumers it mis-sold to between 2005 and 2011. The PPI-like [...]
I wrote last week that credit card insurance company CPP have been tagged for mis-selling and additionally ordered to pay back millions in PPI claim funds. FSA named CPP’s mis-selling a “serious offence” and ordered them to repay £14.5 million to hundreds of thousands of consumers it mis-sold to between 2005 and 2011. The PPI-like products CPP has been required to pay out on were just direct sales that they made, although they were the intermediary in lots of more cases connected with major banks which could lead to millions of pounds more for banks themselves!
Quite a few high street banks, but Santander and HSBC particularly, facilitated transactions of the dodgy cover by CPP to its buyers. When card owners received brand new or replacement credit and debit cards, there seemed to be a sticker affixed with CPP’s contact number on it that asked consumers to get in touch with to switch on or confirm receipt of the card. When customers called in, CPP took the opportunity to sell (mis-sell actually) card protection services. It’s not all that shocking that Santander may well take advantage of its customers this way – it’s persistently at the bottom of customer satisfaction polls.
The services CPP presented purported to help consumers who’d obtained a card thieved or lost and offered £100,000 of protection against unauthorised charges. This cover was entirely unneeded because the bank that provided the card would maintain these charges when it comes to loss or theft of a card. Identity theft cover was also mis-sold according to the FSA mainly because agencies selling the product made overblown statements regarding the dangers and repercussions of ID theft to promote sales.
The card protection cost customer £35 and the identity theft cover ran £84. For consumers who paid for both, they were out £119 each year. FSA’s Tracey McDermott said, “While CPP’s products were relatively inexpensive, they were sold widely and CPP encouraged its sales agents to be overly persistent. This exposed a very large number of customers to the unacceptable risk of buying products they did not want or need.”
For the cases where CPP was the direct supplier of the product, they’ve been ordered to write customers and notify them they’re to be paid their money back. But, this won’t contain cases in which they were the intermediary contacted via the sticker secured to a card. FSA continues to be in discussions with banks over this, but there’s minor doubt they’ll be ordered to pay out a PPI claim to each customer hit by this mis-selling.
Between 2005-2011, greater than 4.4 million card protection insurance plans were mis-sold before FSA forced CPP to cease providing the product. You could possibly likely have been one of these if you had a credit or debit card from Santander or HSBC – other banks may well yet turn out to be involved as well. Santander has put aside some capital to cover CPP-related PPI claims. HSBC has not yet confirmed any companies for CPP relevant mis-selling. Barclays is rumoured to have used CPP for card activation solutions and that when consumers bought from CPP, they assumed they were buying from the bank itself.
Lloyds and Halifax didn’t ever work with CPP Ltd. Barclays and RBS have yet to answer demands for information about their possible involvement with CPP’s dodgy mis-selling. Although the amounts are comparatively small, if you were mis-sold, you ought to collect your compensation.
If you feel you’re owed for CPP claims or even a PPI claim, visit CPPClaims.com and advise them you were missold CPP Policy from Card Protection Plan.