Have you been mis-sold credit card insurance? It's payback time...
7 million customers could be due up to £300 compensation each for the scandalous mis-selling of credit card insurance cover by Britain's biggest banks. 13 banks have signed up to the compensation scheme, which amounts to £1.3bn.
The banks referred customers to insurance company CPP, which sold them pointless policies – like ID theft cover – that the city regulator says aren’t worth the paper they’re written on. The big banks – Santander, Barclays, RBS, HSBC, Tesco and MBNA - managed to co-erce 4.4 million suckers into buying the ID protection policy, which was already covered in the terms of conditions of the credit card.
Customers who took out the cover, dating as far back as 2000, will be entitled to the amount they paid for their policy since January 14 2005, plus 8% interest on any sum they owe.
Barclays are the worst culprit, which is a bit embarrassing for its new chief exec Anthony Jenkins, who appears to have merrily stood by in his previous role as CEO of Barclaycard and let it all happen.
As for CPP, they’ve already been fined £10.5 million by the Financial Conduct Authority, and this latest bout of compensation could put it out of business.
FCA’s chief exec Martin Wheatley said: ‘We believe this will be a good outcome for customers who may have been mis-sold the card and identity protection policies. Subject to CPP's customers approving the scheme, these policy holders will be able to claim a full refund of premiums with interest.’
HA. HA. HA.