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Credit protection mis-selling victims to receive claim reminders

Deadline for compensation claims expires on 30 August with millions still to be paid out

15 May 2014
PPI Confused

Millions of people entitled to compensation for mis-sold card or identity protection policies will receive reminder letters to make a claim next month.

Consumers were sold policies by Card Protection Plan (CPP) that either weren't needed, or to cover risks that had been greatly exaggerated.

They were typically persuaded to part with up to £80 a year to insure their bank or credit cards after calling a telephone number to register or activate a new or replacement credit or debit card.

In the majority of cases they did not need the policies because they were already protected by their bank or card issuer.

CPP operated through 13 banks and card issuers and has set aside nearly £70m for the compensation bill.

More than £16m has been paid out so far after policyholders were invited to make claims in February.

Claimants should receive between £100 and £300 each, depending on how long they maintained their policies. Eligible customers have until 30 August to apply for compensation.

CPP stresses that customers do not need to use the services of a claims management company or law firm to complete the claim form.

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