CPP looks to court arrangement over compensation payments

TROUBLED York insurance company CPP has confirmed it is considering a court-approved agreement to settle compensation claims for its customers.

The business, which has been in discussions with the Financial Services Authority (FSA) since March 2011 surrounding the mis-selling of its identity and card protection products, confirmed the FSA was now talking to banks and business partners, which sold CPPs products as part of a package.

A spokeswoman said media reports that CPP faced bankruptcy if the banks would not agree to what the FSA suggested they contribute to the compensation package were "speculation".

The business, which employs almost 1,000 people in York, issued a statement saying that it continued to have "positive and constructive discussions with the FSA regarding the form, structure, details and timing of customer redress and the settlement of customer claims".

"These discussions have also included certain of the group's larger business partners," it said. It confirmed that it was considering a "solvent scheme of arrangement" regarding the compensation, emphasising the business was not insolvent.

"Consideration of these options is at an early stage, however, and no decisions have been made.

"CPP remains committed to achieving an outcome that is acceptable to all stakeholders and which will enable us to progress and provide a greater degree of certainty for the business," it said.

Comments(16)

dodgydavereturns says...
10:39pm Fri 21 Sep 12

Here we go! Another one about to go to the wall!

Hoofarted says...
6:19am Sat 22 Sep 12

Corrupt mis-selling has no place in a democracy. Tricking people into taking out insurance but failing to alert them to the loop holes/impossible clauses has been going on for a long time at cpp. Some ex staff i have spoken to felt ashamed when people rang to activate an insurance claim, only to be refused on some sinister technicality.

Get rid! And give the building to people unable to get on the property ladder due to the artificial inflated house prices, via low interest rates.

peterstreet says...
8:58am Sat 22 Sep 12

Hoofarted wrote:
Corrupt mis-selling has no place in a democracy. Tricking people into taking out insurance but failing to alert them to the loop holes/impossible clauses has been going on for a long time at cpp. Some ex staff i have spoken to felt ashamed when people rang to activate an insurance claim, only to be refused on some sinister technicality.

Get rid! And give the building to people unable to get on the property ladder due to the artificial inflated house prices, via low interest rates.
do you not realise that there are 1000 York jobs at stake here? typical of some people who use this site,unthinking and uncaring only interested in hearing the sound of their own keyboard. and who are you to talk about democracy & corruption? you don't even have the courage to post under your own name no matter how apt your silly name is!

AnotherPointofView says...
9:15am Sat 22 Sep 12

peterstreet wrote:
Hoofarted wrote: Corrupt mis-selling has no place in a democracy. Tricking people into taking out insurance but failing to alert them to the loop holes/impossible clauses has been going on for a long time at cpp. Some ex staff i have spoken to felt ashamed when people rang to activate an insurance claim, only to be refused on some sinister technicality. Get rid! And give the building to people unable to get on the property ladder due to the artificial inflated house prices, via low interest rates.
do you not realise that there are 1000 York jobs at stake here? typical of some people who use this site,unthinking and uncaring only interested in hearing the sound of their own keyboard. and who are you to talk about democracy & corruption? you don't even have the courage to post under your own name no matter how apt your silly name is!
She's JA's mate - Red Sonja.

lels says...
9:21am Sat 22 Sep 12

CPP has based their business model on a pyramid scheme all show but no foundation. Management are corrupt and must be punished. If this means job losses so be it. Underhand methods have no place in business.

peterstreet says...
9:33am Sat 22 Sep 12

lels wrote:
CPP has based their business model on a pyramid scheme all show but no foundation. Management are corrupt and must be punished. If this means job losses so be it. Underhand methods have no place in business.
idiotic! and you cowards claim to be representative, this site becomes a bigger joke day by day

Buzz Light-year says...
9:52am Sat 22 Sep 12

you don't even have the courage to post under your own name

...is just about the stupidest thing anyone could say on a facility like this.

Silver says...
10:51am Sat 22 Sep 12

peterstreet wrote:
Hoofarted wrote:
Corrupt mis-selling has no place in a democracy. Tricking people into taking out insurance but failing to alert them to the loop holes/impossible clauses has been going on for a long time at cpp. Some ex staff i have spoken to felt ashamed when people rang to activate an insurance claim, only to be refused on some sinister technicality.

Get rid! And give the building to people unable to get on the property ladder due to the artificial inflated house prices, via low interest rates.
do you not realise that there are 1000 York jobs at stake here? typical of some people who use this site,unthinking and uncaring only interested in hearing the sound of their own keyboard. and who are you to talk about democracy & corruption? you don't even have the courage to post under your own name no matter how apt your silly name is!
POT calling kettle, you also do not have the courage to post under your name

bluephoenix says...
12:19pm Sat 22 Sep 12

As a person who was severely inconvenienced (the company tried to use my new card fraudulently) because I would not buy identity fraud insurance them as I was with another company, I have no sympathy with C.P.P.

Rule Brittania says...
5:01pm Sat 22 Sep 12

The CPP business employs 1000 people,some would say that if they are involved in miss selling they deserve to be out of work but a close friend worked at CPP some years ago and can confirm beyond doubt that compliance to FSA rulings were of paramount importance and sales agents were monitored and recorded by an internal department that would receive bonuses for the exposure of any agent that did not adhere to the many conditions of compliance,This resulted in the offending agent being financially penalised,the firm made every effort to dissuade miss selling practices to avoid massive fines from the FSA and also on moral grounds.The founder of this company also has a reputation for helping many charitable causes locally,,and no I am not related to the founder.

chickpea says...
11:20am Sun 23 Sep 12

I worked for this company for 6 yrs and misselling was endemic. Even those of us who worked within the rules still knew that we were selling a product which is essentially worthless. It may not be illegal to sell identity protection to an elderly person who is only calling in because they have been burgled and need to block their cards and is in a distressed state, but it's morally wrong. But if I didn't do it I would be penalised. What started as a customer service role, increasingly became telesales as more and more pressure was put upon staff, and CPP created more types of dodgy insurance. Phonesafe, HomeAssist, IPP to name a few. The majority of my calls were complaints about misselling. It was a demoralising job and I am glad to be out of it.

chickpea says...
11:22am Sun 23 Sep 12

And when it comes to the 1000 people who's jobs are at risk, yes of course I have sympathy for my ex colleagues and friends. But shoddy practices can't be allowed to continue simply because Yorkies need jobs. Instead, more should be done to help with job creation across the city.

Rule Brittania says...
12:25pm Sun 23 Sep 12

chickpea wrote:
I worked for this company for 6 yrs and misselling was endemic. Even those of us who worked within the rules still knew that we were selling a product which is essentially worthless. It may not be illegal to sell identity protection to an elderly person who is only calling in because they have been burgled and need to block their cards and is in a distressed state, but it's morally wrong. But if I didn't do it I would be penalised. What started as a customer service role, increasingly became telesales as more and more pressure was put upon staff, and CPP created more types of dodgy insurance. Phonesafe, HomeAssist, IPP to name a few. The majority of my calls were complaints about misselling. It was a demoralising job and I am glad to be out of it.
Two sides to every story then,let the readers be judge and jury,,what about Clark Kent??

Kevin Turvey says...
2:34pm Mon 24 Sep 12

To be fair CPP have been lifting the legs of the gullible and have been mis-selling for years even after several warnings in the national media of their dubious business practices!
‘1000 jobs’ mainly part time, poorly paid positions.
CPP were pretty good at positive PR though so they appeared to be a 1st class business when in fact they are not or should I say ready for its inevitable demise - were not?
The adverts for pay when they were advertising with vacancies were entirely misleading as a friend of Mrs Turvey who worked there for a short period can testify, she left as she did not want to lie for a very poor living!
Bye Bye CPP you will not be lost.
Hopefully other dodgy businesses will go the same way as the recession bites ever deeper!

Dynorod says...
11:59pm Sun 14 Oct 12

I would just like to say thanks for the information and comments I have read here. I have noticed for a couple of years several employment agencies constantly recruiting for CPP positions and alarm bells started to ring. From articles and testimonials it is due to extremely high turnover of staff and people not coping well with the hard sell target like nature of the role.
I worked in banks for many years and the change there to hard sell telesales rather than Customer Service has made many leave and ensures these jobs are constantly also being advertised now.
I was approached by CPP last week who found my CV online and sweat talked into an interview this coming week. I am now 100% sure I will not be going and I am sure I am making a wise decision avoiding this company.

Dynorod says...
12:00am Mon 15 Oct 12

*sweet

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