2:50pm Tuesday 21st February 2012
By Julie Hayes
MEMBERS of Parliament are meeting representatives of York employer CPP tonight in Parliament.
York MPs Hugh Bayley and Julian Sturdy and other interested MPs, will meet chief executive Paul Stobart to talk particularly about local jobs at the card protection provider, which employs about 1,000 people in York.
CPP suspended its shares on the London Stock Exchange yesterday after the Financial Services Authority (FSA) asked it to carry out a review of past sales of its card protection and identity protection and provide compensation where the watchdog believed it had been mis-sold. It is currently negotiating with the FSA to try to reduce the scope of the review after saying the business would not be viable if it was forced to take this action.
Hugh Bayley, MP for York Central, said that he had written to the FSA in May last year to express his concerns about the impact of the investigation on jobs in York and urged them to complete a speedy investigation, but he felt they had been slow.
He said he received a reply from Hector Sants, the chief executive of the FSA, saying the organisation needed to do the enquiry and would follow their normal procedures.
Mr Bayley said: “I am concerned the enquiry has taken as long as it has. If there is a problem with the way CPP has sold policies in the past, it needs to be resolved as quickly as possible so they can address the problems and move on.
“It is nine months since I first wrote to the FSA and I do think they have been dragging their feet, which has not done CPP any favours.
“I don’t form a judgement about the issues under investigation by the FSA, but I will do whatever I can to protect jobs for hundreds of my constituents,” he said.
Julian Sturdy, MP for York Outer, said: “Whilst I support a thorough FSA investigation into any potential mis-selling of credit card or identity protection, I truly hope that this matter can be resolved as quickly as possible.
“The existing uncertainty in economic markets combined with news of this investigation must be of great concern to CPP’s employees in York and I am due to meet with representatives of CPP today in Parliament to discuss the situation further.”
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