PPI is old news. Welcome CPP!
The whole PPI misspelling saga has been dragging on for years. Most commonly attached to loans or mortgages from banks, the cash windfalls received in compensation payouts to the mis-sellees is enough to make you wish you had been
gullible fore-sighted enough to take a policy out in the first place. But if you were unlucky enough to have missed that boat, never fear, a new compensatory ship is rolling in. Card Protection Plan compensation.
The Financial Conduct Authority announced yesterday that they are instigating a new tranche of compensation claims for policies sold by Card Protection Plan Limited (CPP), who, unsurprisingly, sold card protection plans as well as identity protection policies, whatever they are.
An estimated seven million policyholders will receive a letter from CPP during February 2014 enclosing a compensation claim form, or two forms for those who purchased both the card and identity protection policies. The policies were often sold when customers called to register or activate a debit or credit card.
The letter will detail how to make a claim IF you feel your policy was mis-sold. Examples of how products may have been mis-sold include being given misleading or unclear information when the policy was sold, on the basis of which, the policy was purchased. Note that the FCA has already found buckets of evidence of widespread mis-selling by the company, resulting in a £10.5million fine in 2012.
Claim makers will not need to provide documentary evidence, but will need to write a short statement saying why the policy was mis-sold. No charge will be made for making a claim (other than by pop-up claims handlers who are probably worming their way up right now), and all claims must be received by 30 August 2014. Note that making a claim will cancel any policies still in existence, so those receiving benefits might want to think carefully before jumping on the bandwagon. Anyone who thinks they should be entitled to claim, but who does not receve a claim form by the end of February should should contact CPP on 0800 083 4393.
Anyone entitled to compensation will have the premiums paid since 14 January 2005 returned, less any sums paid out under the policy, but plus interest. Any premiums paid before that date are lost because such policies were unregulated before then (so providers could essentially do what they liked.)
The banks and card providers who have agreed to provide compensation under the scheme are as follows:
Bank of Scotland Plc (part of Lloyds Banking Group)
Barclays Bank Plc
Canada Square Operations Limited (formerly Egg Banking Plc)
Capital One (Europe) Plc
Clydesdale Bank Plc (part of National Australia Group Europe)
Home Retail Group Insurance Services Limited
HSBC Bank Plc
Morgan Stanley Bank International Limited
Nationwide Building Society
Santander UK Plc
The Royal Bank of Scotland Plc
Further information about the scheme is available by calling the dedicated helpline on 0800 083 4393 or on www.cppredressscheme.co.uk