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

Reillymac

I took out a policy with CPP years ago when I was fairly new to Internet shopping. I also took out the Identity protection policy. I acknowledge that I chose these policies and chose to renew them every year however the reality is that I and probably many others did so on the basis of the information CPP were providing or the fear they engendered via their literature. This year having read press coverage I did not renew card protection however did renew the Identity protection (fear again!). Now I feel a bit of a fool. Two points though 1) surely the banks and credit card companies are responsible to some extent for not making it clear to customers that these policies were not essential. 2) even though someone may have taken out their initial policy through a card company once renewed surely the contract is directly between CPP and the customer.

kaledonia

I have just phoned CPP, to be told that as my policy was linked to an MBNA credit card, I would have to take it up with MBNA...

KevinG

SD100 wrote: »

Does this mean I have a case with CPP or will I have to contact Egg?

No point in contacting Egg, doesn't exist any more. The credit card business was taken over by Barclays.

Firemunchkin

I think back to when I was sold the policy and have misgivings about the process undertaken at that time.

I had my bag stolen in Barcelona in around 2003, and had remembered this company I'd heard of called CPP and I phoned them up. I was very young, only about 22, I didn't know what else to do in my somewhat emotional state. They said I didn't have a policy and would need to take one out for them to help me. I did so, and they cancelled my old cards (they tracked them down using my name and address and bank details) and ordered new ones. They were helpful, yes, and they told me that they would be able to refund any money that the thieves took from my cards. A few days later we saw that the thieves had used my cards at road tolls (where in those days you didn't need a signature or a PIN). Those amounts were refunded back to my card.

I remember feeling relieved that I wasn't going to be out of pocket, not only from my own foresight (I had logged on to my internet banking and moved my money to one of my other accounts, i.e. out of the reach of the thieves with my current account bank card) but also with regard to the money they were stealing.

In my bag were also my keys, passport, medication (required daily), brand new expensive lipstick, camera, earrings and other semi-valuable things. CPP can't do anything about the rest of that, and at the time they didn't have replacing passport/keys/locks as part of the standard service (I'm not even sure they do now, do they?). My father arranged to have the locks changed at home and to get new keys cut. I spent hours in a police office getting the insurance number for CPP, hours at the British Consulate getting a new passport, and more hours in the local hospital getting my medication replaced. CPP couldn't have helped with any of that stuff, and really that was the bulk of the pain in the **** I had to endure.

I've never needed the service again since, but I've been paying out for it, from £20 to £25 to £35 a year. Because, perhaps somewhat naively, I thought I needed the service to ensure everything was taken care of. So, now that it's clear that we don't really need CPP for covering fraud or stolen amounts, I'm left wondering what on earth I need the policy for at all.

I have no idea if I was missold on this basis - should they have told me that all I needed to do was actually phone my bank? Should they have told me that actually because I had reported my card as stolen already that I would not be liable for the stolen money anyway? Do we know yet if we've claimed at any point whether or not that would mean it wasn't missold? If the policy was initially sold before 2004/2005, but it was renewed automatically each year, whether this qualifies under the FSA's refundable terms? Do we know whether it will just be the annual cost that is refunded or whether any interest will be accrued (as in PPI and bank charges reclaim?)

AfroKinky1

They tried to sell me this over a year ago. They painted a dire and tragic picture of the misery it would cause if I fell prey to identity fraud. I told them I am not prepared to spend the rest of my life paying to be protected for something that may never happen.

It was a thanks but no thanks from me!

I suppose because I have the card protection service they thought I was enough of a mug to sign up for this as well. I always thought the card protection was worth it. I am wondering now...

Humptydumpty29

I'm really confused! I've just looked at my policy and it was started in 1994 via the HSBC and I've never needed to use it! With one thing or another I never cancelled it as I thought it was something I needed. Where will I stand?

_Andy_

Humptydumpty29 wrote: »

I'm really confused! I've just looked at my policy and it was started in 1994 via the HSBC and I've never needed to use it! With one thing or another I never cancelled it as I thought it was something I needed. Where will I stand?

I've never had to claim on my home insurance - are you suggesting I can claim all the premiums back?

Do you understand the concept of 'insurance'?

Mobius1

_Andy_ wrote: »

I've never had to claim on my home insurance - are you suggesting I can claim all the premiums back?

Do you understand the concept of 'insurance'?

Surely the crux of the issue is CPP's business practices in relation to these products that were offered. Asking for your home insurance premiums back after years of no claims is indeed silly but it is not an effective analogy.

What if instead you found out that your years of paid premiums were going to waste, primarily covering something that you don't have to pay for? E.g. I rent a flat and I was sold mains water supply pipe insurance 10 years ago. I wouldn't be liable in the event of a problem that required the insurance, so the money is wasted.

It is wasted because the company selling the product mis-informs or over-states the value of the product. It isn't prudent like home insurance, it's simply (for the most part) giving your money away.

I think if you looked at it from that point of view you might reconsider your flippant response toward this new user who is understandably curios and probably quite interested in getting the money back from a company that has conducted itself in a dodgy manner. Unless your plan was to eloquently break down the basics of insurance to educate this person in a friendly and welcoming manner?

william7093

i was sold this insurance by barclays i was told having a sum of money in account , they have a policy where it would be covered i did not know the money was covered anyway i was sold policy in 2004 only cancelled it last week when i was told banks cover your card and money to a sum of 100000 not that i have that amount can this money be reclaimed i was paying 36.99 a year also they scared me with fraudulent card use in the uk and stolen cards

pfr1

After reading the advice regarding CPP in the MoneySavingExpert.com email yesterday, I contacted CPP. After waiting for thirty minutes a young lady took my call. She informed me that as the policy had been sold by Nat West in 2005 I needed to contact the bank. She also said a letter would be despatched to people who were mis-sold cover, but she did not know when it would be sent or if I was on the list. Where do I go from here? Is there a contact number for the bank to deal with this issue? Any help would be much appreciated