- Part 1 - CPP Card Protection & Identity Protection Compensation Letter
- Part 2 - CPP Compensation Frequently Asked Questions
- Part 3 - What is a CPP Card Protection Policy and what does it cover?
- Part 4 - What are the benefits of a CPP Identity Protection Policy?
- Part 5 - CPP Compensation – What happens next? Scheme of Arrangement
Have you received a letter from CPP about a card protection policy or identity protection policy? If so, you could be in line for compensation. Read on…
Letters have been sent out by CPP relating to financial products they were selling. In particular, there were concerns about their Card Protection policies and Identity Protection policies.
The letter looks like this.
IMPORTANT: YOU MAY BE ENTITLED TO COMPENSATION FOR YOUR CARD AND / OR IDENTITY PROTECTION POLICY
• You bought a card and / or identity protection policy through us (CPP), a bank or card issuer. You may be entitled to compensation for that policy.
• We will write to you within 12 weeks to explain what you have to do to be considered for compensation. You do not have to do anything now.
We have not yet assessed the way your policy was sold or whether you are entitled to compensation. You do not have to respond or contact us now to claim compensation.
Card protection policies
You may have bought a card protection policy from us, or through a bank or card issuer, such as when you called to register or activate a card. These policies had several brand names, including:
• Card Protection;
• CardGuard (offered by HSBC);
• Card Safe (offered by M&S Bank);
• Barclaycard Card Protection;
• Barclays Cardholder Protection;
• NatWest Card Protection;
• Card Protection Plus;
• Commercial Card Protection; and
• Egg Emergency Cover.
The average annual cost of a card protection policy is currently £30. The features of this product are detailed in Appendix A and include:
• being able to cancel all your lost or stolen cards and order replacements in one phone call; and
• insurance cover if you lose your keys, handbag or wallet.
You may be entitled to compensation if you were given misleading or unclear information when you were sold your card protection policy, and you purchased the policy based on this information, such as:
• the policy said it covered you for up to £100,000 (figure varied over time) worth of unauthorised transactions that occur after you inform your bank or card issuer that a card was lost or stolen.
But you did not need this cover, as your bank or card issuer is responsible for any transactions after you tell it your card has been lost or stolen.
• the policy said it covered you for up to £5,000 (figure varied over time) worth of unauthorised transactions that occur before you inform your bank or card issuer that a card was lost or stolen.
But we did not explain that you are only liable for unauthorised transactions in limited circumstances, as your bank or card issuer will usually cover you for anything over the first £50 of those transactions.
You may also have other concerns with the way your card protection policy was sold to you.
Identity protection policies
You may have bought an identity protection policy from us, or through a bank or card issuer, such as when you called to register or activate a card. The average annual cost of an identity protection policy is currently £80. The features of this product are detailed in Appendix B and include:
• cover for your costs in defending and restoring your credit status after fraudulent activity; and
• access to credit reports and monitoring of your personal information online to help you spot the early signs of identity theft.
You may be entitled to compensation if you were given misleading or unclear information about your identity protection policy and you purchased the policy based on this information, including:
• if the risk of identity theft was exaggerated to you; or
• if you were incorrectly told you are liable for debts that someone else takes out using your details.
You may also have other concerns with the way your identity protection policy was sold to you, such as if sales staff sold you a policy even after you made it clear you did not want it or emphasised that you could cancel the policy after you bought it.
This letter does not affect your policy. If you still hold a card and / or identity protection policy, it will continue and you can still benefit from its features.
What we will do next
We are proposing a ‘scheme of arrangement’ for reviewing whether policyholders are entitled to compensation. Find out more about the proposed scheme in Appendix C.
We will write to you with more information about the proposed scheme within 12 weeks. This will include an invitation to vote on whether you are in favour of the proposed scheme.
The proposed scheme will include a process for paying compensation, where it is due, as quickly as possible. See the process it would follow in Appendix D.
If the scheme is approved we will write to you again to ask whether you want to be considered for compensation and to cancel your policy. We will include a form that you will have to complete and return to us before the specified deadline.
You will not have to use and pay a company to claim compensation on your behalf.
If you are entitled to compensation we will return the amount you have paid for your policy since 14 January 2005 (the date the FCA started to regulate insurance products like these), less any sums paid out in respect of the policy, plus interest on the amount owed.
If you are entitled to and paid compensation you will have cancelled your policy, so you (and anyone else covered by the policy) will lose the benefits it provides.
You can find out more about the proposed scheme and see answers to some frequently asked questions at www.cppredressscheme.co.uk
If your name, address or contact details on this letter are incorrect, please call our freephone number 08000 83 43 93 (outside the UK dial +44 1144 520 800). We are available between 8am and 9pm Monday to Friday, and 8am to 6pm on Saturdays.
Alternatively, you can write to us at Scheme Processing Services Limited, P0 Box 250, WYMONDHAM, NR18 8DG.
Head of Customer Redress