Thursday, 29 August 2013


The Financial Conduct Authority formally launched the compensation scheme on 3 February 2014.

It admitted to me that 140,000 people bought these products from a firm that has not joined the compensation scheme. And the scheme does not include premiums paid before 14 January 2005. In both cases you can still make a claim to get them back through other channels. That process is explained below.

Although the FCA says it is 'compensation' in fact no compensation is being paid. You will just get back the premiums you were tricked into paying and taxable interest at 8%. So far no firm that colluded with CPP to to mis-sell these products has been fined. See my blogpost Misleading with impunity

If you paid a firm called CPP to insure your credit or debit card against loss or fraud you are almost certainly due compensation. And if you paid the same firm for ID theft protection you should also get money back. These products may have been sold under different names. But they will all have come through CPP.

Seven million people could be due up to several hundred pounds each. If you are one of them it is well worth claiming.

Compensation will normally be due if you bought or renewed either product from 14 January 2005. To qualify you will have to say you were mis-sold the product. The form you are sent will tell you what to say. The sales process was so bad that everyone was mis-sold.

You should NOT use a claims management firm to help you. They will just take a share of your compensation but will do nothing useful.

A few people may not be entitled. Details of who may not get compensation are set out later.

The CPP Redress Scheme should have written to you last autumn to let you know you had one of the products. You may not get this letter if you have moved and it does not have your up to date address. You can call 08000 83 43 93 to let the CPP Redress Scheme know about your change of address. This number is free from landlines but from a mobile you could be charged a lot. You can also call that number if you are not sure if you had a policy. If you have moved you should insist that it checks your details.

The High Court approved the redress scheme on 14 January 2014 and it formally begAn on 31 January 2014 and the Financial Conduct Authority formally launched it on 3 February 2014

In February 2014 the Scheme will send you a form to claim compensation for being mis-sold. You will get two forms if you had both credit card protection and ID theft protection.

On this form there will be a box asking why you think you were mis-sold. The paragraphs above the box explain the reasons why it was mis-sold. All you have to do is copy one or more of those reasons into the box. The products were sold so badly that everyone should get compensation.

The sooner your return the form the sooner you will be paid. The first payments will be made from late March or early April 2014. You must return this form by 31 August 2014. If it arrives after that your claim will not be considered unless you have a very good reason for the delay.

If you claim compensation and you are still paying for the product your policy will be cancelled and any future payments will stop. The consensus is that these products offered little that was of use and were not worth the high premiums charged. Card protection insurance cost CPP 60p but it sold the product  for around £35 a year. ID Theft insurance was sold for £84 a year but cost CPP £16.

If you are refused compensation or disagree with the amount there will be a way to challenge it. 

All the premiums you paid from 14 January 2005 will be refunded. Interest at 8% a year will be added to those premiums from the date they were paid until the date of your settlement around the middle of March 2014. Tax at 20% will be deducted from the interest but not from the compensation. People who do not pay tax can reclaim the tax deducted from HMRC. People who pay a higher rate of tax will have to pay extra. Any money you have already had paid out on the insurance will be deducted from the compensation.

The CPP card protection product was sold under various names such as CardGuard, Card Safe, Card Protection, Cardholder Protection and Egg Emergency Cover.  The ID theft product was sold under the name CPP Identity Protection. Most people bought the products after calling a number on a new or replacement credit or debit card to ‘activate’ it or report its safe delivery. Those cards will have come from your bank or card provider but the product was supplied by CPP.

Apart from CPP itself the firms in the scheme are

·                 Bank of Scotland (part of Lloyds Banking Group)
·         Barclays Bank
·         Canada Square Operations Limited (formerly Egg Banking)
·         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

So if you were encouraged to buy the product by any of those firms you will be in the compensation scheme.

Some people who have one of these products may not get compensation through this scheme. But they can still claim compensation through the usual channels – put in a formal complaint to CPP or your bank or card provider and if it is refused go to the Financial Ombudsman Service.

The card protection product was changed in 2011. If you bought it for the first time after it was changed you will not be covered by the scheme. The date of change varies depending on your card provider but it is between 1 March 2011 and 18 September 2011.

The ID theft product was not changed and is covered for all dates. However, CPP Identity Protection is not covered if it was bought face to face or online. Only telephone sales are covered.

Other things that are not covered:-
  • Premiums paid before 14 January 2005 are not covered by the scheme. That's because insurance was not regulated by the Financial Services Authority until that date.
  • Similar card protection or ID theft insurance from other companies is not covered.
  • Some CPP products were sold by firms that are not one of the 13 firms in the scheme which are listed above. They may be included later but it is best to put in a separate claim now and if it is refused go to the Financial Ombudsman Service. 
  • If your CPP product was sold as part of a packaged bank account.
Even if your sale is not covered, you can still try to get compensation by putting in a formal complaint to the bank or card provider or the firm involved and if it is refused go to the Financial Ombudsman Service.


If you have already claimed compensation and been paid then you cannot claim under the Scheme. If you claim was rejected then you still have a claim if you fulfil the scheme criteria. You should be sent the claim form. But if you have not received letters about the scheme late last year then contact the Scheme and make sure you are included.

If you claimed compensation on 22 August 2013 or later then your claim will not have been processed and you should have been told that by letter. You will be sent the claim form in February and should fill it in including the box about why you were mis-sold. It will be processed with all the others.   

The CPP redress scheme

My blogpost Misleading with Impunity explains how the banks and card providers have got away with their part in this mis-selling.

The FCA statement on CPP redress scheme on 22 August 2013

The original FSA notice about the fine on CPP issued 15 November 2012

The full findings of the FSA on the misselling 15 November 2012

CPP claims 2.11
3 February 2014


  1. Hi Paul. Just wondering what the case is before this date. I took mine out in December 2004 and have received a letter today. Cheers G

    1. The scheme will cover premiums from 14 January 2005. For earlier premiums claim as explained in the post above.

  2. Dear Paul
    I had one of these policy which I purchased from information sent to me by Barclaycard. I have just telephoned the CPP and have been told that because I did not speak to an adviser I am not due any compensation and therefore outside the scheme. What is the difference between reading information on a letter which would have given the benefits of the ID protection and speaking to an adviser, surely the information in the letter would be the same as the information the CPP adviser would be trying to sell you.

  3. I entered into a CCP contract during the mid 90's. 7 or 8 years later I discovered they automatically debited my account annually even though I no longer required the service.
    Where do I stand on this matter???

  4. Hi after several phone calls to cpp as have received no letter after being told would be in the post since Sept. Its now Nov. they have said Im not entitled because I didn't take it out over the phone but I know I did so hoe can you prove this? Also surely if I took it out online wouldn't there be emails etc. Face to face well I think I must have to travel a few hundred miles for that as live in Cornwall x

  5. I will be away from the UK during the dates when letters will be sent in December and January. Can anyone advise what action i should take so that i can claim compensation?

  6. I don't see that the proposed scheme is offering to pay any compensation. It is merely offering to refund your original payment cost plus interest. There should be an amount of compensation in addition to that to compensate you for being screwed in the first place. Be very careful that in accepting the proposed scheme you are not signing away your rights to a proper refund and compensation.

  7. Paul, I thought you might like to hear that cpp is trying to automatically renew policies, despite having written to tell me that my policy had been mis-sold. When I phoned to tell them I would not be renewing, the so called customer service person said she refused to speak to me and hung up - they seem surprised that customers are annoyed at being defrauded!

  8. Is it possible to claim back CCP for a deceased person.

  9. During 1998, CPP debited the premium to one of my cards without authorisation. I was dissatistied with their response to my complaint and referred it to the Information Commissioner (ICO). The ICO agreed with me that there was a breach of the First data Protection Principle which states that information must be obtained and processed fairly and lawfully. The ICO considered this to be an important matter. CPP subsequently told the ICO that they would modify their processes during 1999. In future they would obtain customer authorisation before debiting premiums.

    The FSA did not consider the Data Protection Act, but they discovered the very same issue. So it would appear that CPP did not follow through with their undertaking to the ICO and have been in breach of the DPA ever since.

    CPP estimates the compensation for this issue alone to be in the region of £6.1m. But that only relates to customers who can claim under the scheme. Anyone affected between 1998 - 2005 is on their own - unless the Information Commissioner wishes to investigate why consumers have lost millions due to a known DPA breach......

  10. I have just contacted CPP and been told because I didn't by the policy over the phone with them I am not able to claim compensation. I had the policy sold to me to cover a virgin credit card so possibly bought it from them and virgin are not on the list so am I able to claim and if so from who?????

  11. I had a CPP policy from 1993 to 2013, arranged initially via my HSBC bank. Having had no correspondence regarding any claim I phoned the CPP Redress line today, to be told that as my product had been arranged via Laser UK Creation Financial Services I would not be entitled to claim as they weren't participating members.
    I've never heard of these people, and have tried to phone a Birmingham number I found on the internet, but just went on to voicemail.
    Can you advise on what course of action I can take?

  12. Dear Paul,
    My wife died in June 2012 and I am still going through loads of her old paperwork and I have found a renewal letter from CPP dated 26 October 2008. I did not even know she had taken a CPP policy out. I am executor and sole beneficiary of her will. Knowing her this could only have been taken out over the telephone as she never went into the Bank (Nationwide) and never used the computer. Do I have a claim on her behalf, please?

  13. Hi Paul

    I originally bought my CPP policy from Trust House Forte, when they converted their charge card to a Nat West credit card. As THF essentially no longer exist (and CPP have replied to my complaint by saying I am not entitled to compensation through their scheme of arrangement) is there any way I can still make a claim against anyone?

  14. this is very interesting. I received 5 letters all on the same day from CPP. upon checking they all had different account numbers. I guess this means I was sold the product 5 times?

  15. Hi Paul - I signed up to CPP through Alliance and Leicester back in 1995 - not sure if it was through the bank or credit card. Will it make a difference if I don't know which it was through? Are they part of the scheme as they are not on the list? Thanks

    1. A & L are now Santander so no probs.

  16. I had CPP card protection and have the form to fill in. I do not know what wording I should use in the Section B box: Why you want to be considered for compensation. Can you advise please? Many thanks.

  17. Hi Paul, just like Notwithitanymore, I have received my letter from CPP and am unsure of what to put in Section B. Surely if CPP have sent me a letter they have my details on file so there shouldn't be any need for me to justify why I should be considered for compensation. I don't want to put the wrong thing and it to affect my claim so please advise on what to put.

  18. If you were mis-sold insurance against your credit or debit card through the company CPP you may finally be in line for a windfall, after customers voted overwhelmingly in favour of approving a compensation scheme. You have to be careful ever since not to get trapped into such schemes again. Anyway there are a lot of services which might be helpful in solving any kind of financial problems. payday loans Canada can tackle any financial difficulty.

  19. I recieved my letter today and in the process of completing it. Section B asks why I want to be considered for compensation. Apart from the obvious mis selling of the product, is there anything else that should be written?

    1. I'd like to know this too, Mr Lewis, so please help/advise us.


  20. Hi Paul - I signed up to CPP through the Yorkshire Bank back in 1991 for a credit card. Yorkshire Bank are now part of the National Australia Group Europe. Are they part of the scheme as they are not on the list? Thanks

  21. Hi Just received the form from CPP and was wondering what to say when it ask why do you think i should get compensation my words would be as it was mis sold to me at the time and wish to claim payments back as not want write a whole book re the reason

  22. Having taken out a cpp policy in 2007 I have absolutely no recollection of how we did it: phone, letter, carrier pigeon. Will this affect our claim?

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  24. What wording to use? As Paul already explained, all you have to do is copy the wording provided on the claim form. Duh!

  25. I actually enjoyed reading through this posting.Many thanks.

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  26. Have tried to get a claim for from CCP for a mis-selling by Fonesafe whilst renewing phone insurance with T Mobile. Nobody seems to be able to or want to send a form. All CCP have agreed to do is register a mis-selling complaint. Is this the correct procedure?

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  28. CPP is only writing to people. If you get an email or call asking for private details about this, ignore it. And remember, never pay to reclaim.

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  29. Got a letter from CPP in settlement today addressed to "Policyholder" which meant I only got it after someone else had opened it. The cheque is made payable to "Policyholder only" which makes it pretty useless. CPP now want me to send the cheque back at my expense, and want proof I am the policyholder so they can reissue it to me! They have asked for bank statements. What are my rights as technically they have not sent me an offer of settlement but have sent the offer to someone called Policyholder, and why should they have access to my bank statements?

    1. If you call SPS and pass security you should be able to correct that over the phone, did you have any problems with the security questions they asked?

  30. My husband and I claimed on individual forms for a joint policy. Today we have each received a cheque which differ by £150. Whilst I'm not complaining, would this discrepancy be explained by the number of cards each of us had covered? I changed my name when we married in 2010, but I can't believe this short amount of time would make so much difference. Any ideas or similar experiences?

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  35. Paul, we have the form to fill in but cannot remember when we started or finished the account with CPP,can we still claim? Also, we have lost the pre-paid envelope and don't know where to send the claim to!

    1. You don't need to be specific about when you had the policy and the address is under section D.

    2. Scheme processing services ltd,
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  38. I received 3 claim forms for 3 different numbered policies for CCP. I sent back one to test the waters and received a cheque for £268 informing me that this would cover any other policies held and was full and final payment. Is this correct or shall I challenge it?

  39. Dear Paul,
    I have held and used a Barclaycard for some time. During that period I paid a monthly Direct Debit to Privacyguard, which I understand is CPP. I submitted a claim for compensation to CPP who state that the insurance was part of a packaged bank account and would not consider my claim. Where do I go from here?

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  43. Having taken out a cpp policy in 2007 I have absolutely no recollection of how we did it: phone, letter, carrier pigeon. Will this affect our claim?

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