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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.
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