View more on these topics

Banks agree to £1.3bn CPP misselling redress scheme

CML - 700
FCA chief executive Martin Wheatley

The Financial Conduct Authority has reached an agreement with Card Protection Plan Ltd and 13 high street banks and credit card issuers to pay up to £1.3bn in redress to customers who were missold credit card insurance.

CPP was fined £10.5m in November last year for “widespread misselling” of credit card insurance products between January 2005 and March 2011. The fine relates to the firm’s ‘Card Protection’ and ‘Identity Protection’ policies.

The 13 banks and credit card issuers caught up in the misselling scandal, along with CPP, have now agreed to establish a “scheme of arrangement” to process misselling claims. The scheme still needs to receive approval from the High Court and must be voted on by creditors.

The FCA says 7 million people, who between them bought and renewed about 23 million policies, will soon receive a letter from CPP giving more information of the redress process.

FCA chief executive Martin Wheatley says: “We have been encouraged that, working closely with the FCA and despite their different business needs, a large number of firms have voluntarily come together to create a redress scheme that will provide a fair outcome for customers.

“This kind of collaborative and responsible approach is a good example of how firms are taking more responsibility and helping – step by step – to rebuild trust.

“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.

“To try and ensure that as many people as possible hear about the arrangements and that nobody misses out on redress, CPP, the banks and the credit card issuers have agreed to pay for a series of adverts in the national newspapers.”

The banks and credit card issuers who have signed up to the redress scheme are:

• Bank of Scotland

• Barclays Bank

• Canada Square Operations Limited (formerly Egg Banking Plc)

• Capital One (Europe)

• Clydesdale Bank

• Home Retail Group Insurance Services

• HSBC Bank


• Morgan Stanley Bank International

• Nationwide Building Society

• Santander UK

• The Royal Bank of Scotland

• Tesco Personal Finance


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. And so it begins…let this be a warning…even if you are not the seller, or the manufacturer and merely market or introduce a product to customers, if you take money from that relationship the Regulator can come after you to compensate customers!
    I agree it’s the right thing for customers in this instance, but this is setting a dangerous precedent which blurs the lines of regulatory & contractual responsibilities of the parties in the chain.

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm