CPP warns of "substantial adverse impact" after losing RBS contract

Published in Business news York Press: Photograph of the Author by , Business editor

TROUBLED employer CPP has been dealt another blow as RBS confirmed it would not renew its contract with the business.

The business, which provides card and identity protection and mobile phone insurance, warned recent events would have a substantial adverse impact on the business in 2013 and beyond.

The bank confirmed that it would not be renewing the group's contract from March 2013 for the provision of mobile phone insurance in the UK, which CPP described as "expected".

T-Mobile decided not to renew its mobile phone insurance with CPP in October and Barclaycard also decided not to renew contracts to provide card and identity protection last year.

In a statement to the stock exchange CPP, which employs about 1,000 people, mainly in York, said: "As previously indicated, the combination of the expected increase in FSA-associated costs, the anticipated decline of the UK business as a result of the restrictions imposed by the FSA, and lost business due to the decision by RBS not to renew its contract will have a substantial adverse impact on the business in 2013 and beyond."

It said it continued to make important progress adjusting its UK business and reducing its cost base to mitigate some of the adverse profit impact from lower revenue.

The FSA investigation found “widespread mis-selling” at the business and ordered CPP to pay a £10.5 million fine over the next two years.

Other costs, including compensation to customers, are expected to bring the total amount to £33.4 million.

Comments (11)

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1:20pm Wed 6 Feb 13

bob the builder says...

Every time we got a new bankcard and had to activate it we were told tales of ID theft and what would happen if we didn't buy insurance. I wonder if they had a slogan on the wall 'you don't have to be immoral to work here but it helps'. I never did buy the insurance nor have my ID stolen - anyone who did would be worse off as I can't get credit!
Every time we got a new bankcard and had to activate it we were told tales of ID theft and what would happen if we didn't buy insurance. I wonder if they had a slogan on the wall 'you don't have to be immoral to work here but it helps'. I never did buy the insurance nor have my ID stolen - anyone who did would be worse off as I can't get credit! bob the builder
  • Score: 0

1:22pm Wed 6 Feb 13

YSTClinguist says...

Pot calling the kettle black? (RBS)
Pot calling the kettle black? (RBS) YSTClinguist
  • Score: 0

2:05pm Wed 6 Feb 13

ReginaldBiscuit says...

Another blow job for CPP. They'll be sucked dry of business soon.
Another blow job for CPP. They'll be sucked dry of business soon. ReginaldBiscuit
  • Score: 0

2:31pm Wed 6 Feb 13

Paul2012 says...

Identity Theft is true, not a tale, I don't think there is any argument their.

Feel bad for any subsequent staff that currently work there, it's not their fault.

It's a shame if they lose their jobs.
Identity Theft is true, not a tale, I don't think there is any argument their. Feel bad for any subsequent staff that currently work there, it's not their fault. It's a shame if they lose their jobs. Paul2012
  • Score: 0

3:31pm Wed 6 Feb 13

Willy Eckerslike says...

BTB, do you ever have anything good to say about anything, or do you just post on here to moan and bad mouth everyone,
BTB, do you ever have anything good to say about anything, or do you just post on here to moan and bad mouth everyone, Willy Eckerslike
  • Score: 0

4:53pm Wed 6 Feb 13

kelly80 says...

This is old news, this was reported on in November! Everyone jumped on the 'we hate CPP' bandwagon then too!

Don't comment on something you don't know the full details on!
This is old news, this was reported on in November! Everyone jumped on the 'we hate CPP' bandwagon then too! Don't comment on something you don't know the full details on! kelly80
  • Score: 0

7:39pm Wed 6 Feb 13

yorkborn66 says...

kelly80 wrote:
This is old news, this was reported on in November! Everyone jumped on the 'we hate CPP' bandwagon then too!

Don't comment on something you don't know the full details on!
what are they then ?
[quote][p][bold]kelly80[/bold] wrote: This is old news, this was reported on in November! Everyone jumped on the 'we hate CPP' bandwagon then too! Don't comment on something you don't know the full details on![/p][/quote]what are they then ? yorkborn66
  • Score: 0

7:48pm Wed 6 Feb 13

PKH says...

Willy Eckerslike wrote:
BTB, do you ever have anything good to say about anything, or do you just post on here to moan and bad mouth everyone,
I'm with BTB on this, they were/are far too pushy, using scare 'blackmail' tactics to try sell their product which I never wanted or thought appropriate for me.
[quote][p][bold]Willy Eckerslike[/bold] wrote: BTB, do you ever have anything good to say about anything, or do you just post on here to moan and bad mouth everyone,[/p][/quote]I'm with BTB on this, they were/are far too pushy, using scare 'blackmail' tactics to try sell their product which I never wanted or thought appropriate for me. PKH
  • Score: 0

8:47pm Wed 6 Feb 13

Silver says...

Paul2012 wrote:
Identity Theft is true, not a tale, I don't think there is any argument their.

Feel bad for any subsequent staff that currently work there, it's not their fault.

It's a shame if they lose their jobs.
Identity theft is indeed true but the service they were providing was coverage for the first 100 quid if it happened. The banks automatically cover the rest I believe.
[quote][p][bold]Paul2012[/bold] wrote: Identity Theft is true, not a tale, I don't think there is any argument their. Feel bad for any subsequent staff that currently work there, it's not their fault. It's a shame if they lose their jobs.[/p][/quote]Identity theft is indeed true but the service they were providing was coverage for the first 100 quid if it happened. The banks automatically cover the rest I believe. Silver
  • Score: 0

8:54pm Wed 6 Feb 13

Garrowby Turnoff says...

I use Sentinel. No problems but card stolen a few times in Italy and Sentinel coped well in the aftermath.
I use Sentinel. No problems but card stolen a few times in Italy and Sentinel coped well in the aftermath. Garrowby Turnoff
  • Score: 0

10:15am Thu 7 Feb 13

heworth.28 says...

kelly80 wrote:
This is old news, this was reported on in November! Everyone jumped on the 'we hate CPP' bandwagon then too!

Don't comment on something you don't know the full details on!
I DO know the details as I was working there when dozens of us call centre workers were trying to tell the management what was going on, as per usual no-one listens to the people actually having direct customer contact
[quote][p][bold]kelly80[/bold] wrote: This is old news, this was reported on in November! Everyone jumped on the 'we hate CPP' bandwagon then too! Don't comment on something you don't know the full details on![/p][/quote]I DO know the details as I was working there when dozens of us call centre workers were trying to tell the management what was going on, as per usual no-one listens to the people actually having direct customer contact heworth.28
  • Score: 0

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