Time running out for CPP compensation claims

CPP’s Holgate offices

CPP’s Holgate offices

First published in News

CUSTOMERS who were mis-sold insurance by York firm CPP have just days to apply for compensation.

Around seven million people have been invited to apply for payouts from the Holgate- based firm as part of a redress scheme thatwhich came into effect on January 31 after being sanctioned by the High Court.

It followed CPP being fined a record £10.5 million in November 2012 after regulators found it gave misleading and unclear information about credit card and identity theft insurance.

By June, only around one quarter of those who are eligible had submitted their claims, leaving around five million people yet to do so.

Forms sent out to those eligible for redress have to be completed and returned by this Saturday.

The average sum people have received so far in redress is £188.

MoneySavingExpert has written to regulator the Financial Conduct Authority (FCA), arguing that the deadline should be extended as many victims have mistaken claim forms for junk mail.

The FCA has said the August 30 cut-off date was a feature of the scheme that was approved by the High Court and CPP customers.

The regulator said the deadline featured prominently in letters sent out to consumers and it also issued a reminder in July encouraging people not to delay sending their forms back.

The mis-selling scandal ran from 2005 to 2011, although only a proportion of the policies sold were arranged directly through CPP.

Comments (2)

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8:58am Thu 28 Aug 14

chickpea says...

when i worked at cpp, many of the queries about mis sold policies were from people who'd had an old credit card reactivated by having a cpp renewal premium charged to it. Often they had moved address several times since the policy was taken out, so whilst their bank might know their current address, cpp wouldn't. So many of these letters have gone out to old addresses and the customer still won't know about the mis selling. It would be better if cpp's business partners, the banks and credit card issuers, wrote on cpp's behalf to their customers, inviting them to get in touch with cpp. After all, these partners did receive commissions on the policy sales.
However there does need to be a cut off date at some point, so that the business can plan for it's future and the security of it's staff.
when i worked at cpp, many of the queries about mis sold policies were from people who'd had an old credit card reactivated by having a cpp renewal premium charged to it. Often they had moved address several times since the policy was taken out, so whilst their bank might know their current address, cpp wouldn't. So many of these letters have gone out to old addresses and the customer still won't know about the mis selling. It would be better if cpp's business partners, the banks and credit card issuers, wrote on cpp's behalf to their customers, inviting them to get in touch with cpp. After all, these partners did receive commissions on the policy sales. However there does need to be a cut off date at some point, so that the business can plan for it's future and the security of it's staff. chickpea
  • Score: 7

11:11am Thu 28 Aug 14

Emperor Palpatine says...

Do they actually have a product though? When I worked at CPP it was obvious to me that customers did not need card insurance as the banks cover them for unauthorised use. I worked in a department that in theory did not get involved with selling but we were put under more and more pressure to scare customers into buying Identity Theft Insurance by exaggerating the risks which in reality are pretty small. Another useless product which I think they came up with as they could see the writing was on the wall for card insurance.

It's the staff I feel sorry for, they work there to earn money to pay their bills and don't set out to con people but they are incentivised to do so and threatened with disciplinary action if they don't meet targets. We need big employers in York who offer a fair day's pay for a fair day's work but we don't need employers like CPP who give our city a bad name.
Do they actually have a product though? When I worked at CPP it was obvious to me that customers did not need card insurance as the banks cover them for unauthorised use. I worked in a department that in theory did not get involved with selling but we were put under more and more pressure to scare customers into buying Identity Theft Insurance by exaggerating the risks which in reality are pretty small. Another useless product which I think they came up with as they could see the writing was on the wall for card insurance. It's the staff I feel sorry for, they work there to earn money to pay their bills and don't set out to con people but they are incentivised to do so and threatened with disciplinary action if they don't meet targets. We need big employers in York who offer a fair day's pay for a fair day's work but we don't need employers like CPP who give our city a bad name. Emperor Palpatine
  • Score: 6
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