#Debtline blog: More than 7 million people have been sucked in to their bank's or card provider’s sales pitch that they ‘needed’ CPP insurance (card and ID protection insurance).
CPP’s card protection product was sold as Card Guard by HSBC, Card Safe by M&S Money, Barclaycard Card Protection, Barclays Cardholder Protection, NatWest Card Protection, Egg Emergency Cover and Card Protection Plus and Commercial Card Protection by CPP and a number of its business partners.
Customers were told that they should take out card protection, which provided cover for fraud of up to £100,000. However, this was not really necessary as banks have to cover fraud as a matter of course. So if your bank account is defrauded by criminals, your bank will reimburse the money, unless they can prove the customer was grossly negligent.
The Financial Conduct Authority (“FCA”) has confirmed that the major banks and credit card providers, together with CPP, have agreed to set up a central redress system to compensate customers. Compensation will be available for all customers who took out the insurance after 2005.
CPP should have written to all policyholders with more information about the compensation scheme and what to do next. If they haven't written to you, contact them if you had a policy you won't need to prove that the insurance was mis-sold to you as simply claiming guarantees your money back.
If you need more advice on any type of debt contact us at Twinpier