Send us your pictures, video, news and views by texting NORTHERN ECHO to 80360 or email us
CPP, based in York, expects performance to worsen after mis-selling scandal
A CREDIT card insurer at the centre of a £1.3bn mis-selling scandal has revealed a significant fall in revenues.
CPP, based in York, which recently agreed a compensation deal in which seven million customers could share up to £1.3bn, said its performance will be worse than 2012.
The company is writing to customers who were sold and renewed about 23 million policies, after regulators found it gave misleading and unclear information about credit card and identity theft insurance.
CPP, which employs more than 500 workers in York, has already been fined £10.5m over the affair, and the compensation deal with 13 high street banks and credit card companies was agreed in August.
Bosses say publicity about the scandal has seen the number of UK customers renewing policies drop by 0.6 per cent from 70.7 per cent at the end of June, and could fall further.
It now has 7.6 million live policies, down from 7.9 million at the end of June and 10.1 million in June 2012.
Brent Escott, chief executive, said: “Our immediate priority is to strengthen the group as we enter the next phase of our development.
“We are working towards rebuilding the company's reputation and repositioning our business model to provide longer-term stability.”
Earlier this year, CPP founder, Hamish Ogston, launched a colourful tirade against City regulators about the compensation package.
He described the £1.3bn figure as “b******s”, adding: “There's never been a compensation redress scheme in history where it's been 100 per cent (success rate).”
He suggested the scale of overall compensation paid out would in reality be much smaller than the headline figure.
Comments are closed on this article.