Business

CPP compensation reminder letters to be sent

CPP headquarters in York Image copyright PA
Image caption Up to seven million people are entitled to pay-outs, as a result of CPP's mis-selling

Some people entitled to compensation for mis-sold card protection from CPP will receive reminder letters next month.

The insurance was mis-sold to up to seven million people by York-based CPP, which operated through 13 High Street banks and card companies.

The company has set aside nearly £70m for the compensation bill.

More than £16m has been paid out so far after policyholders were invited to make claims.

Deadline

Customers were persuaded to part with £30 a year to insure their bank or credit cards, or £80 for a wider identity protection policy.

But in most cases, they did not need such policies, because they were already protected by their bank or card issuer.

Policyholders can return forms sent in February to claim compensation. They should receive between £100 and £300 each, depending on how long they maintained their policies. However, anyone claiming the compensation will also see their policy cancelled.

The company said that claims were broadly in line with expectations so far.

The deadline for making a claim is the end of August, and reminder letters will be sent to some groups of policyholders in June.

"We are committed to achieving a fair and reasonable outcome for customers that may have been affected by historical issues," said Helen Spivey of CPP Group.

CPP also has a website with details of the redress scheme for anyone who believes they are entitled to compensation.

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