FSA fines credit card insurer £10.5m over 'widespread' mis-selling

[Michael Browne]

The Financial Services Authority (FSA) has issued its joint largest fine over retail activities of £10.5 million to credit card insurer Card Protection Plan (CPP) for mis-selling insurance products.

 

CPP has also agreed to pay redress to consumers and has estimated a further £14.5 million will need to be distributed, according to the regulator. Taken with the costs associated with the FSA investigation and the fine, CPP is facing a total bill of £33.4 million.

 

The FSA said it had discovered widespread mis-selling of CPP's two main products, card protection and identity protection, between January 2005 and March 2011. It added that CPP did not provide clear information to its customers or treat them fairly.

 

The regulator said CPP had emphasised its card protection product would provide consumers with up to £100,000 of insurance cover, when they were already covered by their banks, and that it overstated the risks and consequences of identity theft in selling its identity protection product.

 

CPP sold the products through its own sales channels and high street banks, generating £354.5 million profit from 4.4 million policies over the period examined by the FSA, and renewed 18.7 million policies, generating an income of £646.5 million.

 

It has agreed to stop new sales of products, except where they are sold as part of an insurance package, and to stop trying to keep customers who call to cancel their policies. CPP has been ordered to appoint an external 'skilled person' to monitor and report on its claims and complaints handling.

 

 

http://citywire.co.uk/new-model-adviser/fsa-fines-credit-card-insurer-10-5m-over-widespread-mis-selling/a634703

[Surfer01]

So how do we go about claiming as we have move address three times in the past year. Anything to nail these swindlers!

[MARTIN3030]

It seems that those with valid claims are now starting to get settlements.

In some cases such as Citicard,it is Citicard themselves who have liability.

You should demand to know the periods covered by their offers of settlement and make sure it includes interest.