Millions to claim for mis-sold card protection - Money - News |

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Millions to claim for mis-sold card protection

Millions to claim for mis-sold card protection

Category: Money

Updated: 03/02/2014
First Published: 03/02/2014

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Millions of consumers who were mis-sold Card Protection or Identity Protection products through Card Protection Plan Ltd (CPP) will be able to claim their money back as the redress scheme kicks in this month.

From mid-February, over seven million people who bought these insurance-style products from either CPP or their bank or card provider can begin to recoup compensation owed to them, the Financial Conduct Authority (FCA) announced today.

Clive Adamson, director of supervision for the FCA, said:

"If you believe you were mis-sold one of these protection products, fill out and return the claim form to make sure you get your money back. Don't put it off till the last minute.

"The FCA has worked closely with CPP, the banks and card providers to set up this consumer redress scheme. This is an important example of firms voluntarily coming together to meet our expectation that consumers get a fair deal."

These Card Protection and Identity Fraud products typically cost around £30 and £80 a year respectively, and the redress scheme covers payments dating back to 2005, so some people could be owed hundreds of pounds. Payments are expected to be made from late March.

Many customers were sold these products from overly-persistent, target-driven sales agents, some of whom did not even make it clear these were optional. Many products were unnecessary as banks cover fraud in most cases.

So, if you think you've been affected, how do you claim?

  1. Customers will receive a claim form by post, or two if you were sold both products, this month.
  2. Fill in all sections of the form – you do not need to use a law firm or claims company to do this as they will take a cut of your refund. Make sure you remember to sign and date the form and then return it in the envelope that will be provided.
  3. Any customers who have not received the form by the end of February should call the helpline on 0800 083 4393.
  4. Remember that if you claim your policy will be cancelled, so consider if you really do need it.
  5. All forms must be completed and returned by 30 August 2014.

What next?

Find the best credit card for you.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.