CPP warns of "substantial adverse impact" after losing RBS contract (From York Press)
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CPP warns of "substantial adverse impact" after losing RBS contract
11:40am Wednesday 6th February 2013 in News
By Julie Hayes, 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)
YSTClinguist
says...
1:22pm Wed 6 Feb 13
ReginaldBiscuit
says...
2:05pm Wed 6 Feb 13
Paul2012
says...
2:31pm Wed 6 Feb 13
Feel bad for any subsequent staff that currently work there, it's not their fault.
It's a shame if they lose their jobs.
Willy Eckerslike
says...
3:31pm Wed 6 Feb 13
kelly80
says...
4:53pm Wed 6 Feb 13
Don't comment on something you don't know the full details on!
yorkborn66
says...
7:39pm Wed 6 Feb 13
kelly80 wrote:what are they then ?
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!
PKH
says...
7:48pm Wed 6 Feb 13
Willy Eckerslike wrote: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.
BTB, do you ever have anything good to say about anything, or do you just post on here to moan and bad mouth everyone,
Silver
says...
8:47pm Wed 6 Feb 13
Paul2012 wrote: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.
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.
Garrowby Turnoff
says...
8:54pm Wed 6 Feb 13
heworth.28
says...
10:15am Thu 7 Feb 13
kelly80 wrote: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
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!
bob the builder says...
1:20pm Wed 6 Feb 13