CPP card and identity protection compensation scheme results

Published: 03/02/2014     Last Modified: 07/10/2014

CPP card and identity protection policyholders were able to claim compensation for mis-sold policies. The deadline for claiming compensation has now passed.

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

If you received a letter and claim form from CPP, and you wanted to claim compensation, you had to submit the claim form to the scheme administrators by 30 August 2014.

Compensation scheme results

As at 2 October 2014 the scheme administrators have paid £450m of compensation to 2.369 million claimants, an average of £190 per claim. We have also been told:

  • this represents a response rate of 33.8% of all potential claims
  • only one claim submitted before the 30 August 2014 deadline was rejected
  • the amount of compensation offered has been disputed by 2,741 claimants - these disputes are being handled under the scheme’s dispute resolution procedure
  • 8,562 compensation claims were received after the 30 August 2014 deadline

Claims in exceptional circumstances

The scheme administrators will not consider compensation claims they received after 30 August 2014, other than in two exceptional circumstances:

  1. if you were out of the country for at least six months between 31 January 2014 and 30 August 2014, or
  2. if you suffered from a certified medical condition such that it was unreasonable to expect you to respond before 30 August 2014

If either of these exceptional circumstances apply to you, you should send a written request to be considered for compensation, and include supporting documents and your completed claim form.

You will need to send the request to the following address and ensure the scheme administrators receive it by 28 February 2015:

Scheme Processing Services Limited
PO Box 250
NR18 8DG

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.

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

Complaints about handling of a claim 

If you want to complain about the handling of your claim to the CPP compensation scheme, you should follow the dispute resolution procedure set out on cppredressscheme.co.uk.

You may also have received a letter from the scheme administrator with information about the dispute resolution procedure.

If the scheme administrator rejected your claim and you want to dispute the decision, you must ensure the scheme administrator receives your written reply within 30 business days of the date on the ‘notice of rejection’.

You should be aware that CPP, or the bank or card issuer that sold you a card or identity protection product, are not obliged to deal with disputes solely about how a claim to the CPP compensation scheme was handled now that the scheme is closed.

Why policyholders were 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 that 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, which we announced on 15 November 2012.

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

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. The amount of compensation you might receive 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, and the scheme administrators agree that either of the two exceptional circumstances apply, 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 costs about £30 a year, while identity protection costs about £80 a year. 

The scheme, which was agreed with 13 banks and credit card companies and CPP, was voted on by 1.3 million CPP policyholders with 98% voting in favour. The High Court then ratified the scheme in January 2014.

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 go to 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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