CPP card and identity protection compensation scheme closure

CPP card and identity protection policyholders were able to claim compensation for mis-sold policies. The deadline for claiming compensation has now passed, and no further compensation claim forms will be accepted. 

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.

Under the scheme rules, consumers who submit their claim after the bar date (30 August 2014) are not entitled to any compensation under the scheme.

Only complaints that have already been referred to the scheme’s dispute procedure will now be considered. No scheme complaints about claims forms received after 28 February 2015 (the exceptional bar date) will be considered by the scheme administrators.

The firms that participated in the scheme do not have to consider complaints or compensation claims received from customers, where the subject matter is within the scope of the scheme – i.e. the mis-selling of card and identity protection products.

The Financial Ombudsman Service can consider complaints that are within the scope of the scheme but has to determine them based on what it thinks should have been decided under the scheme rules.

If you need further information about CPP’s card and identity protection products, you should contact CPP on 0800 0850227 or 01904 541239 from overseas. 

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.

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.

The scheme took effect on 31 January 2014. Claim forms were sent to eligible policyholders in February 2014.

All claim forms had to be returned to the scheme administrators by 30 August 2014. The scheme administrators considered claims made in exceptional circumstances up to 28 February 2015.

Compensation scheme results

By 5 March 2015, the scheme administrators paid £451m of compensation to 2.37 million claimants, an average of £190 per claim. This represents a response rate of 33.9% of all potential claims.

Only one claim submitted before the 30 August 2014 deadline was rejected, 11,045 compensation claims received after the 30 August 2014 deadline were rejected and 3,596 claim outcomes have been disputed.

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