Card Protection Plan CPP Mis-selling

Card Protection Plan CPP Mis-selling.

The financial industry regulator, the Financial Conduct Authority (FCA) has confirmed that yet another billion pound compensation drive is under way for mis-selling in the banking industry.

What is a Card Protection Plan?
When you have a credit card or debit card, many banks also offered the facility of card protection plan insurance to protect you from fraud and abuse.

It is alleged that card issuers mis-sold up to 23 million policies by over exaggerating the protection offered and not offering enough clear and not misleading information before the CPP insurance was taken out resulting in many people unable to claim anyway.

Identity Fraud Protection Insurance
In addition, part of the CPP review will cover insurance for identity theft.  Again, mis-selling is alleged along the same lines as CPP.

Comment
Most credit cards already offer protection from fraud anyway without the need for card protection insurance.  The costs for this redress exercise could be up to £1.3n and covers all of the top card issuers.  Those issuing banks that have agreed with the FCA to voluntarily review include the following:

• Barclays Bank
• Canada Square (formerly Egg)
• Capital One
• Clydesdale Bank
• Halifax Bank of Scotland (part of Lloyds)
• Home Retail Group Insurance Services
• HSBC
• MBNA
• Morgan Stanley
• Nationwide Building Society
• Royal Bank of Scotland
• Santander UK
• Tesco Personal Finance