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New bosses step in at CPP
A NEW era is about to begin at CPP as the firm appoints a replacement chief executive and chief financial officer.
The two directors are tasked with completing the turn around of the credit card protection firm, which employs 600 people in York, following its infamous mis-selling investigation by the Financial Conduct Authority and subsequent £10.5 million fine.
Replacing Paul Stobart as chief executive officer is Brent Escott, who joined CPP on June 17 as interim deputy CEO.
Bringing more than 20 years experience in the insurance industry, Mr Escott was most recently managing director of the General Insurance Division at Capita plc where he oversaw the commercial insurance business and, in addition, operations in Netherlands, Denmark and France.
Previously Mr Escott was managing director of the UK division of Brit Insurance Holdings PLC and was founder and managing director of Club Direct Insurance Services Limited.
Mr Escott said: “Significant progress has been made over the past two years to refocus the business following the onset of the FCA's investigation.
“During my first two months at CPP I have experienced a determined company that is working hard to put its historic issues behind it after a period of immense challenge.
“There remains much work to be done to reposition the business for the future and I look forward to leading CPP in the next phase of its development."
The Holgate-based firm’s new CFO is Craig Parsons who replaces the outgoing Shaun Parker.
Mr Parson’s appointment comes as a promotion having held a senior role in CPP's group finance function since 2002, his most recent position being director Tax and Treasury.
In this capacity he sat on the Group Executive Committee and Group Operating Committee.
Mr Parsons has held primary responsibility for the group's lender relationships and played a leading role in the successful refinancing of the business in July. He qualified as a Chartered Accountant with PwC in 1995 and has 18 years experience of working in the financial services industry.
Mr Parsons said: “My 12 years with CPP mean that I know the business exceptionally well and have a comprehensive understanding of the issues we face.
“Significant financial challenges remain, but the recent refinancing represents a more stable platform for the business and I am looking forward to working alongside Brent to support the repositioning of the group."
The new appointments will take effect from September 1.
Last week CPP released its half year results which revealed a £3.5 million loss in the six months to June 30 compared with a £14 million profit for the same period last year.
The business was also listed among 13 high street banks and credit card companies as having to pay around £1.3 billion compensation as part of redress over them mis-selling.
Bosses at CPP said the £36 million refinancing of the firm coupled with a cost reduction programme and the sale of its North American business, will provide the money needed to pay redress.
The cost reduction programme has seen what directors have described as around 100 “regrettable” redundancies in York this year, along with the departure of Mr Stobart and Mr Parker.