2 Million Can Claim Card Security Compensation

2 Million Can Claim Card Security Compensation.

The financial services industry regulator, the Financial Conduct Authority (FCA), confirmed yesterday the launch of a compensation scheme for people who bought credit and debit card security protection products.

The FCA estimates that around 2 million people have bought card security products since January 2005. The FCA also estimates that card security products costed on average £25 per year and given that most banking and credit card companies already protect consumers from fraudulent use, the premiums paid for additional card security are likely to have been irrelevant hence the potential for claiming compensation.

Working with banks and card providers, it has been agreed that rather than individual banking groups handling complaints or the Financial Ombudsman Service getting involved, a separate company called Affinion International Ltd has been established to handle all complaints and compensation claims. To make the process easier for consumers any person who purchased a card protection scheme under the following banners will automatically be written to in August and September 2015 with compensation forms:

• Card Protection
• Sentinel
• Sentinel Gold
• Sentinel Protection
• Sentinel Excel
• Safe and Secure Plus

The FCA advises that no consumer need go through the lengthy process of employing a claims management firm as you will be automatically written to if you are entitled to compensation. As well as sending you a letter and claim form the AI scheme will even enclose an envelope for you to return your claim form.

Please note you should not send photocopies, only original claim forms will be accepted and if you have any queries or have not heard from AI scheme by the end of September 2015 you should call the helpline on 0800 678 1930 or if calling from outside the UK +44 208 475 3103.

Deadline 18 March 2016: If you file a claim after this date it may be rejected.

Comment

We must commend the FCA for its handling of this latest round of compensation arrangements. Given that up to 2 million compensation claims may be made between now and March, it is refreshing to see both the card industry and the regulator working in such a co-operative manner to minimise disruption for consumers.