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CPP customers given compensation reminder
6:00am Wednesday 14th May 2014 in Business
MILLIONS of people mis-sold cover for bank and credit cards will receive claims reminders in a £1.3bn compensation scheme.
CPP, based in York, is repaying up to seven million customers after the Financial Services Authority found it guilty of providing misleading and unclear information about credit card and identity theft insurance.
CPP, which employs more than 500 workers in York, was fined £10.5m for the scandal that ran from 2005 to 2011.
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 take out insurance, despite many already having cover.
More than £16m has already been paid out after policyholders were invited to make claims.
Earlier this year, Brent Escott, CPP chief executive, said the firm was working on repairing its reputation.
He said: “It very clearly had a business in York that was very successful and grew at a rapid rate.
“That rate of growth meant the controls and some of the functions weren't given as much attention as they should have been.
“One of the consequences of that was the difficulties with the regulator and, like most cases when things go wrong, it is usually down to management.
“It is not the people that were employed by CPP, who were very loyal and worked across the business.
“It is down to the culture and the framework created by the management style.
“We are changing the company to be customer focused and customer orientated.”