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  • FIRST POST
    • MSE Guy
    • By MSE Guy 29th Mar 11, 5:34 PM
    • 1,628Posts
    • 1,255Thanks
    MSE Guy
    MSE News: Identity theft insurance firm ceases sales after FSA probe
    • #1
    • 29th Mar 11, 5:34 PM
    MSE News: Identity theft insurance firm ceases sales after FSA probe 29th Mar 11 at 5:34 PM
    This is the discussion thread for the following MSE News Story:

    "The Financial Services Authority launches an investigation into protection group CPP's identity theft products ..."

    Last edited by MSE Guy; 29-03-2011 at 8:13 PM.
Page 1
    • vaio
    • By vaio 29th Mar 11, 7:38 PM
    • 11,895 Posts
    • 8,840 Thanks
    vaio
    • #2
    • 29th Mar 11, 7:38 PM
    • #2
    • 29th Mar 11, 7:38 PM
    dead link......
    • dunstonh
    • By dunstonh 29th Mar 11, 7:46 PM
    • 98,297 Posts
    • 66,544 Thanks
    dunstonh
    • #3
    • 29th Mar 11, 7:46 PM
    • #3
    • 29th Mar 11, 7:46 PM
    http://www.moneysavingexpert.com/news/cards/2011/03/identity-theft-insurance-firm-product-ceases-during-FSA-probe is the link
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • VictimOfImpersonation
    • #4
    • 29th Mar 11, 9:52 PM
    • #4
    • 29th Mar 11, 9:52 PM
    It concerns me that this is such a moneyspinner that they plan on relaunching it outside of any insurance wrapper in 6 weeks time.

    Is that to avoid future FSA regulation?

    Once upon a time, car breakdown "cover" was argued as something other than insurance and not regulated. That became something of cross between an anathema and an enigma for a while. I think that one is all straightforwardly regulated now as insurance??

    As a Victim of ID Fraud and as someone who understands a bit about its effects I have a jaded view of what ID Theft insurance actually provides that you do not get anyway as a normal service or indemnity.

    My view was especially jaded when I discovered that out of the £60 or £70 annual premium they were flogging via a bank, only about £11 or £12 reached the insurer for the purposes of paying for any indemnity or service. The rest disappeared in middleman commissions and fees.

    Unless they get rid of such unjustified levels of commission and fees this product should be strangled at re-birth. (Just my opinion )
    Last edited by VictimOfImpersonation; 29-03-2011 at 9:55 PM.
  • BenL
    • #5
    • 30th Mar 11, 11:41 AM
    • #5
    • 30th Mar 11, 11:41 AM
    CPP really do turn on the scare tactics when you ring up to activate a card. Santander offloaded the card activation calls to CPP and its just a sales speil to make you scared to take this newly activated card outside.
    I beep for Robins - Beep Beep
    & Choo Choo for trains!!
  • SEM
    • #6
    • 30th Mar 11, 2:53 PM
    At last...
    • #6
    • 30th Mar 11, 2:53 PM
    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.
    • yorkiegal
    • By yorkiegal 30th Mar 11, 5:30 PM
    • 92 Posts
    • 77 Thanks
    yorkiegal
    • #7
    • 30th Mar 11, 5:30 PM
    • #7
    • 30th Mar 11, 5:30 PM
    I used to work for this company and have many friends who are still there. You would not beleive the pressure they are put under to get sales and it's the reason I left. Initially there was a seperate sales section and those of us who dealt with customer service didn't have to worry about selling products. But that gradually changed to the extent where you could be reprimanded for not trying to sell identity protection to someone who'd phoned you up in a distressed state to say they'd just been burgled.
    Their card protection policy can be a pretty good buy if you have a lot of cards and don't want to ring round all the companies in the event of a loss or theft.
    In my opinion only, the identity protection wasn't worth the paper it was printed on. A lot of agents set up actual policies when they had only been asked for info in writing. That wasn't something that cpp told them to do I should say. But lets just say that things can be inferred rather than outright instructions being given.
    I really feel for those staff who might now be losing their jobs if cpp lose business, as there are few other jobs in York at present. But this investigation is well overdue.

    the above is of course my opinion only. Don't want to get sued lol.
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