Leeds & West Yorkshire

FSA inquiry puts 1,000 CPP jobs at risk in York, MPs say

North Yorkshire MPs have accused the Financial Services Authority (FSA) of "dragging its heels" over the investigation of a major York employer.

The MPs met with credit card insurer CPP to discuss the future of the firm, amid concerns for its 1,000 workers.

CPP ceased trading on the stock exchange on Monday.

In March 2011 it said the FSA was looking into "alleged failings in sales calls" for its UK card protection and identity theft protection products.

Viability 'threatened'

Julian Sturdy, Conservative MP for York Outer, said North Yorkshire MPs had called the meeting because they were "deeply concerned" about the threat to jobs.

Paul Stobart, chief executive of CPP, said the FSA's requirements were "disproportionate and threaten the viability of the business".

In a statement, Mr Stobart said: "We have been, and remain, absolutely committed to working closely and cooperatively with [the FSA] to arrive at an effective solution for our customers, partners and, of course, our people.

"Our employees are vital to our success and their continued commitment and hard work during this uncertain period has been outstanding."

Mr Sturdy said while it was important for the FSA to conduct a thorough inquiry, they were "dragging their heels to a certain extent.

"This is putting the company in a difficult position.

"I'm led to believe that things will be moving reasonably quickly over the next few days and into next week," he added.

Mr Sturdy said that local MPs would be writing to the FSA to the stress the impact of the job issue in York.

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