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People affected by York-based CPP mis-selling scandal can apply for pay-out
SEVEN million people mis-sold cover for bank and credit cards can start making claims this month as part of a £1.3bn compensation scheme, a regulator has confirmed.
Eligible customers who bought into card protection plan products from York-based CPP will begin receiving claims forms in February.
The first pay-outs are expected from late March, the Financial Conduct Authority added.
The scheme was backed by CPP customers voted in favour, and it was approved in the High Court.
CPP and 13 high street banks and card companies, through which the insurance was sold, agreed a package that will see affected policyholders receive between £100 and £300 each.
CPP was fined £10.5m in November 2012 after regulators found it gave misleading and unclear information about credit card and identity theft insurance.
The mis-selling scandal ran from 2005 to 2011, although only a proportion of the policies sold were arranged directly through CPP.
Many customers were sent new bank cards, which they had to activate by going through a CPP call centre, where they were offered insurance.
They were persuaded to spend £30 a year to insure their card, despite many already having cover provided by their bank or credit card firm.