Seven million people who were mis-sold card and identity protection plans by CPP and high street banks will soon be able to begin to claim compensation.
From mid-February around seven million people will be able to claim compensation for card protection and identity protection products they were mis-sold.
Back in 2012 Card Protection Plan (CPP) Limited was fined £10.5 million for the widespread mis-selling of its protection policies. It was also ordered to compensate the many affected customers.
However, it's not just CPP that is coughing up compensation. Thirteen major banks are also having to dip into their pockets.
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The role that banks played
The card protection and identity protection products were not just sold directly by CPP; they were also sold through partners like high street banks. Banks put a sticker with CPP's contact details on the front of their credit cards which they could call to 'activate' the card.
However the call just put them through to CPP's sales team, where they were subjected to aggressive sales tactics that ignored free card protection that already existed for all credit and debit cardholders.
The banks and credit card providers that have now voluntarily agreed to help fund the redress scheme are:
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Bank of Scotland Plc (part of Lloyds Banking Group);
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Barclays Bank Plc;
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Canada Square Operations Limited (formerly Egg Banking Plc);
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Capital One (Europe) Plc;
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Clydesdale Bank Plc (part of National Australia Group Europe);
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Home Retail Group Insurance Services Limited;
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HSBC Bank Plc;
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MBNA Limited;
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Morgan Stanley Bank International Limited;
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Nationwide Building Society;
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Santander UK Plc;
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The Royal Bank of Scotland Plc;
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Tesco Personal Finance Plc.
Claiming compensation
[SPOTLIGHT]Claim forms will be sent to eligible customers this month. They must be returned by 30th August this year. The Financial Conduct Authority believes the final redress bill may hit an incredible £1.3 billion.
Exactly how much you get depends on how long you have held the products. Card protection cost around £30 a year while identity protection cost around £80 a year. This compensation scheme covers sales and renewals of policies dating back to January 2005 and compensation payouts will include interest.
Were you mis-sold card protection or identity protection by CPP? Let us know how your compensation claim goes in the Comments box below.
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