MSE News: Card protection firm CPP must pay £14.5m to mis-selling victims

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  • Alpine_Star
    Alpine_Star Posts: 1,354
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    SnowTiger wrote: »
    LOL.

    You were mis-sold a service you wanted? A service you will look for elsewhere when they pay "back what they owe?"

    Do they owe you anything? You wanted a service and they provide you with it (for a fee). Isn't that how life generally works?

    In most cases (according to the FSA final notice) they didn't provide the service they sold.
  • jamesd
    jamesd Posts: 26,103
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    butlinsmum wrote: »
    I had both the CPP policies - card protection taken out pre 2004 but I still have policy number etc. Will moneysavingexpert be producing a template letter to make a claim?
    Do nothing for now. CPP is required by the FSA to contact the customers who its records show are affected. The same is likely to apply to the banks that sold CPP products. So save yourself some time and postage by waiting until it's clear that you aren't included in their process.

    "1.8. The FSA has taken into account the fact that CPP: ...
    (2) voluntarily agreed on the request of the FSA in March 2012 to vary its permissions to add a requirement that:
    (a) it carry out a past business review, overseen by a skilled person appointed under section 166 of FSMA, with a view to paying compensation where appropriate for its own direct sales of Card Protection. CPP estimates that this exercise could cost in the region of c.£8.5m (depending on customer response rates);"
  • Alpine_Star
    Alpine_Star Posts: 1,354
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    jamesd wrote: »
    Do nothing for now. CPP is required by the FSA to contact the customers who its records show are affected. The same is likely to apply to the banks that sold CPP products. So save yourself some time and postage by waiting until it's clear that you aren't included in their process.

    I would be tempted not to wait on the basis that they might make contact ay some point in the future and act now so as not exhuast the 6 & 3 year complaint time limit, if it han't already done so.
  • CPP chief executive Paul Stobart ... adds: "We are deeply sorry for the errors and wrongdoings of the past and are paying a heavy penalty through what is a large fine."
    No Paul, you're just deeply sorry CPP were caught.

    You don't do this for 6 years and only stop when the FSA catch up with you if you ever thought this was ok.
  • KevinG
    KevinG Posts: 1,852
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    It's a shame that the card protection and identity theft insurance aspects of this are being muddled up. The card protection policies sold by CPP and others do provide a potentially useful service and it is up to the individual whether it is worth their while. The identity theft insurance is arguably completely worthless yet was being aggressively pushed on to people. My autistic son was mis-sold one of these a year or so back and, with my help, he managed to cancel it and get refunded but many others have clearly fallen for it.
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  • I had protection with CPP on a student credit card taken out in 1998. I closed that card about three or four years later then about three or four years ago I had a payment taken from my bank account of £35.

    I called HSBC to ask what it was for and they said it was CPP. I didn't think I had that anymore, certainly was the first time payment had been taken in years. I phoned them to ask why they had taken payment, they didn't really explain, told me that as payment had already been taken they couldn't really cancel it and I had may as well stay with them as they could offer this that and the other for the coming year.

    I also asked why I hadn't received any paperwork to say it was going to be taken or to state I had an up to date policy, they suggested it was because I had moved house since I last contacted them, plausible I guess.

    To be fair I didn't push it any further and reluctantly agreed to continue. Do I have a claim as they randomly took payment after a number of years and told me they couldn't cancel when I enquired about it?
  • Gra76
    Gra76 Posts: 804
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    edited 16 November 2012 at 12:16PM
    I've been paying £35+ a year to CPP for as long as I can remember but I'm pretty sure it was sold to me via Natwest. We'll see what happens. I'm not holding my breath for any refund.

    Edit - just checked my online statements which go back to 2005 and I was paying it then, so it's been at least 7 years....
  • jamesd
    jamesd Posts: 26,103
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    I would be tempted not to wait on the basis that they might make contact ay some point in the future and act now so as not exhuast the 6 & 3 year complaint time limit, if it han't already done so.
    I wouldn't suggest waiting that long, nor just idle waiting. Instead, checking the progress of the contact exercise here once a quarter or so and then contacting once the exercise seems to have been largely completed, if not contacted.

    Those who've moved but don't hold the insurance any more are perhaps the ones who are most likely not to be contacted who might want not to wait a while.
  • jamesd
    jamesd Posts: 26,103
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    edited 17 November 2012 at 11:02PM
    emgem22 wrote: »
    I also asked why I hadn't received any paperwork to say it was going to be taken or to state I had an up to date policy, they suggested it was because I had moved house since I last contacted them, plausible I guess.
    More than plausible. Two reasons the FSA has fined CPP are that they would rebill even for people who have had mail returned as undeliverable and would rebill on different cards from the one where payment was authorised, instead misusing the details of the cards that were registered solely to be protected.
    emgem22 wrote: »
    To be fair I didn't push it any further and reluctantly agreed to continue. Do I have a claim as they randomly took payment after a number of years and told me they couldn't cancel when I enquired about it?
    Yes.

    Since CPP appears not to have your current address, you should contact them to complain once things have become a little clearer, perhaps in the new year when more help about how to approach it has been put together.

    That assumed that yoou originally bought directly from CPP, not from a bank that used CPP. The FSA is still working out with the banks how they are to handle their part of the problem. Will presumably be the same sort of contact the customers exercise as is required for CPP.
  • I have had CPP from 2001 and cancelled on August 2012. I contacted CPP on the number provided. They have informed me i took it out through Morgan Stanley who is now Barclay Card and i should go through them.
    I have contacted barclay card and they are saying nothing to do with them they have no policy at all and have told me to go back to CPP.
    Why does this not surprise me!
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