MSE News: Identity theft insurance firm ceases sales after FSA probe

I was shocked this year to read that CPP were still up to their old tactics, but concerned they'll just starting doing the same thing under a different banner.

In 2006 I had a card protection policy with CPP (one phone call to cancel all lost/stolen bank cards). I rang up about some changes and was offered identity theft insurance. I asked for written information to be sent, saying I hadn’t known such insurance was available and wanted to shop around. I did not say I wanted a policy. The price was quoted but I did not comment on it or discuss payment.

Three days later, a letter arrived thanking me for taking out an ID theft policy and “confirming” my direct debit instructions!

I rang CPP to complain. I was told not to cancel the policy because they “had to issue a policy in order to send written information” and that the bank details in the letter were dummy ones. Neither statement was true - no information arrived and the "confirmation" showed my actual account details.

Later, CPP’s Complaints Co-ordinator checked the recording of the original conversation and agreed I hadn’t asked for a policy. The direct debit could only have been set up from bank details on file relating to my other policy, not on the basis of the telephone conversation. The ID theft policy was cancelled (I'd instructed my bank to refuse the DD too). Naturally, I also cancelled my other policy with CPP and will never deal with them again.

This was not human error, but misuse of information supplied for another purpose. Ironic that a firm offering protection from fraud were trying to take unauthorised payments.