Card and identity protection policyholders to claim compensation by 30 August 2014

Published: 03/02/2014   Last Modified : 25/07/2014

If you received a letter and compensation claim form(s) from CPP about a card and/or identity protection policy, and you wish to claim compensation, you must return the completed compensation claim form before 30 August 2014.

CPP sent letters and compensation claim forms to seven million card and identity protection policyholders during February 2014.

If you received a letter and compensation claim form(s), and you wish to claim compensation, you must complete and return the original compensation claim form. It must be received by the Scheme Administrators by no later than 30 August 2014.

The card and identity protection policies were often sold when customers called a bank or credit card issuer to register or activate a debit or credit card.

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

What you have to do next

Step 1: Consider whether your policy was mis-sold

If you received a CPP compensation claim form you must decide whether you want to claim compensation.

Important reminders

  • If your compensation claim form is not received by 30 August 2014 you will lose your right to claim compensation.
  • If you voted for the CPP compensation scheme in 2013, you still have to complete and return the compensation claim form(s) you received in February 2014 (if, that is, you believe the policy was mis-sold and that you should receive compensation).  
  • If you made a complaint after the CPP compensation scheme was announced in August 2013, you should complete and return the compensation claim form(s) you received in February 2014.
  • If you were sent a new compensation claim form, because you did not complete the first one correctly, you must still complete and return the new compensation claim form which must be received by the 30 August 2014 deadline.

Some examples of when a policy may have been mis-sold are included in the compensation claim form as a guide to completing it. If you claim compensation, because you believe it was mis-sold to you, you will have cancelled your policy, so you will lose the benefits and protection it provides.

If you are still a policyholder and find some or all of the features useful, before you claim compensation you should think carefully about whether you wish to keep the policy. Your existing policy will continue if you decide not to make a claim for compensation.

Step 2: Complete the claim form(s)

If you believe you were mis-sold a card and/or identity protection policy, you should complete the relevant compensation claim form(s). This includes section B of the form, where you have to write a short statement explaining why you believe you were mis-sold your policy.

You will not have to use and pay a company to claim compensation on your behalf. You should complete the form yourself, following the guidance on the claim form.

You should then sign, date and return the compensation claim form(s) using the envelope provided by CPP. The original form has to be used as photocopies will not be accepted.

You do not have to provide any documentary evidence to support your claim.

Step 3: Submit your claim well before 30 August 2014

We recommend that you return your claim form(s) as soon as possible. The deadline for claim forms to be received by the CPP Scheme Administrator is 30 August 2014. Forms received after this date will not be considered.

This will be your only chance to claim compensation for CPP card and/or identity protection policies sold and renewed since 14 January 2005.

This is because the compensation scheme that was voted for by a majority of policyholders provides full and final settlement of all claims for CPP card and/or identity protection policies sold and renewed since 14 January 2005.

However, if you believe your compensation claim was not handled correctly under the 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 CPP Scheme Administrator and the Scheme Adjudicator.

What to do if you have not received or have lost your claim form(s)

If you think you have a card and/or identity protection policy from CPP, and you have not received a letter and claim form(s) or you have lost your claim form(s), you should contact CPP on 0800 083 4393 (outside the UK call +44 1144 520 800) as soon as possible.

Please note that even if you have not received your claim form(s) yet, the deadline for the completed claim form(s) to be received by the CPP Scheme Administrator is still 30 August 2014.

Why policyholders may be entitled to compensation

Policyholders bought and renewed about 23 million policies from CPP, a bank or credit card issuer.

We found widespread mis-selling of card protection and identity protection policies which were provided by CPP and sold by several banks, credit card issuers and directly by the firm. We fined CPP £10.5m for mis-selling the products, as announced on 15 November 2012.

You may be entitled to compensation if you were given misleading or unclear information when you were sold your card and/or identity protection policy, and you purchased the policy based on this information.

Compensation will depend on the length of time you had the insurance policy and which of the two insurance products you bought.  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. Card protection cost about £30 a year while identity protection cost about £80 a year. The average redress payment per customer to date is around £188.

If you need further information about the scheme, call the dedicated helpline on 0800 083 4393 (outside the UK call +44 1144 520 800) or on www.cppredressscheme.co.uk.

Banks and credit card issuers in the scheme

  • Bank of Scotland Plc (part of Lloyds Banking Group)
  • Barclays Bank Plc
  • Canada Square Operations Limited (formerly Egg Banking Plc)
  • Capital One (Europe) Plc
  • Clydesdale Bank Plc (part of National Australia Group Europe)
  • Home Retail Group Insurance Services Limited
  • HSBC Bank Plc
  • MBNA Limited
  • Morgan Stanley Bank International Limited
  • Nationwide Building Society
  • Santander UK Plc
  • The Royal Bank of Scotland Plc
  • Tesco Personal Finance Plc

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CPP compensation scheme

More information about the scheme