Card security product holders: compensation scheme now closed

Published: 18/03/2016     Last Modified: 23/08/2016

Card security product holders were able to claim compensation over potential selling issues, but the deadline for claiming compensation has now passed.

Compensation scheme results

By 20 April 2016, the scheme administrators paid £108.2m of compensation to 533,000 claimants, an average of £203 per claim. This represents a rate of 28.5% of all potential claims based on the total amount of compensation claimed (or 26.8% based on the total number of upheld claims).

No claims submitted before the 18 March 2016 deadline was rejected, 2,508 compensation claims received after the 18 March 2016 deadline were rejected and 189 claim outcomes have been disputed.

Holders of the following products were able to apply:

  • Card Protection
  • Sentinel
  • Sentinel Gold
  • Sentinel Protection
  • Sentinel Excel
  • Safe and Secure Plus

If you received a letter and compensation claim form from AI Scheme Limited and you wanted to claim compensation, you had to submit the claim form to the AI Scheme Administrators by 18 March 2016.

You can see a list of the banks and credit card issuers that have agreed to this compensation scheme below.

Claims in exceptional circumstances

We understand that the AI Scheme Administrators will not consider compensation claims they receive after 18 March 2016, other than in these exceptional circumstances:

  • if you (the scheme creditor) were out of your usual country of residence for at least four of the seven months immediately following 17 August 2015
  • if as a result of you (the scheme creditor) having a certified medical condition or having to deal with the death or certified medical condition of a close family member (supported by appropriate documents)
  • if as a result of the death of the scheme creditor on whose behalf you are acting

it was unreasonable to expect you (or in the case of a scheme creditor who is deceased, you as their authorised representative) to respond to AI Scheme Limited by 18 March 2016 (supported by appropriate documents).

If these exceptional circumstances apply to you, you should send a written request to be considered for compensation as soon as possible (together with supporting documents and your completed claim form) to the AI Scheme Administrators at: AI Scheme Services, PO Box 260, Wymondham NR18 8DU.

This must be received by the AI Scheme Administrators before 19 September 2016.

Submitting replacement forms

If the scheme administrators sent you a replacement compensation claim form (for example, if your first one was not completed correctly) you must return your completed claim form by the date specified by the scheme administrators for it to be considered. If you need help, you may contact the AI Scheme helpline on 0800 678 1930 (from outside the UK +44 208 475 3103, but calls to this number may incur a charge) or via the AI Scheme website.

Under the terms of the scheme you will not get another opportunity to complete the compensation claim form correctly.

I am not happy with the way my compensation claim was handled under the AI Scheme

If you believe your compensation claim was not handled correctly under the AI Scheme, you would be able to complain to the Financial Ombudsman Service on that point if you are not first satisfied with the decisions of the AI Scheme Administrator and then the Scheme Adjudicator.

Information about how to make a complaint can be found on the AI Scheme website.

Why card security product holders were entitled to compensation

One of the features of the card security products was insurance to cover fraudulent use if a card was lost or stolen. This was in certain respects unnecessary because the customer’s bank or card issuer was typically responsible for any transactions after the cards were reported as lost or stolen and, before reporting the matter, customers were only liable for unauthorised transactions in limited circumstances. The bank or card issuer usually covered customers for anything over the first £50 if transactions took place before the card was reported missing. The AI Scheme was designed to deal with any other concerns that product holders may have with the way in which a card security product was sold to them.

If any of the exceptional circumstances described above apply to you, you may still be able to claim compensation.

Compensation will depend on the length of time you had the card security product.  If you are entitled to compensation you will have the premiums you have paid since 14 January 2005 returned to you, less any sums paid out under the policy, plus interest. This date is used because it is when we started regulating insurance products like these. The card security product cost about £25 a year. The average redress payment per customer to date is around £200.

If you need further information about the scheme, contact the AI Scheme helpline on 0800 678 1930 (from outside the UK +44 208 475 3103 but calls to this number may incur a charge) or visit

Banks and credit card issuers in the scheme

  • AIB Group (UK) Plc trading as First Trust Bank in Northern Ireland and Allied Irish Bank (GB) in Great Britain
  • Barclays Bank Plc
  • Capital One (Europe) Plc
  • Clydesdale Bank PLC
  • HSBC Bank plc
  • Lloyds Bank Plc
  • Northern Bank Limited trading as Danske Bank
  • Santander UK plc
  • Tesco Personal Finance plc
  • The Co-operative Bank Plc
  • The Royal Bank of Scotland plc

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External links

AI Scheme Limited

More information about the scheme