CPP fraud protection compensation – the deadline to claim is August 30th

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You have until the end of August to claim compensation from CPP over mis-sold card protection insurance. If you bought a card protection or an identity fraud protection policy from CPP, you may be due compensation of around £200. Don’t miss out.

Update: If you missed the deadline:
I had lots of emails and tweets from people who tried to get through to the call centre or who never received a claim form in the first place. If you missed the deadline of returning your claim form by August 30th and you tried to get your claim form in or to get a new form, you may be able to complain to the Financial Ombudsman Service.

SAVVY TIP: I’ve spoken to the Financial Ombudsman Service and they said they may be able to look at complaints from people who didn’t get their CPP claim form in by the deadline (but who tried) or who tried to get a new form, but couldn’t get through. They couldn’t guarantee that they’ll be able to help, but it is worth a try. You can find out more by going onto the Financial Ombudsman Service website.

Q. How can I claim compensation?

A. If CPP think you could be able to claim compensation, you should have received a claim form in the spring of 2014. You must return this claim form or you will not be able to claim compensation.

SAVVY TIP: The last date for returning the form is 30th August 2014. You must complete your claim on an ORIGINAL of the claim form and you — as the policyholder — must sign it. If you lose the original claim form you can ask for another one by phone (call 0800 083 4393) or you can fill in your name and claim reference number on a claim form request page on the CPPredress website and they’ll send you a form within 48 hours (it may arrive sooner).

Q. How do I know if I was mis-sold?

A. If you were sold a card protection policy or if you were sold an identity fraud protection policy over the phone (i.e not online), it’s VERY likely you were mis-sold. The card protection policy essentially provided benefits that were worthless or that you didn’t need. To give you an idea of what bad value these policies were, of the £34 premium, only 60p went to provide the policy benefits:

In all, at least 13 banks and card issuers were involved in mis-selling CPP policies. If you bought card protection or ID theft protection and you’re a customer of these banks or credit card providers, you could be in line for compensation. They are:

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

Q. When will I get paid?

A. Compensation payments started from the spring of 2014. Once you send in a claim form, your policy will be cancelled (if you’re still paying into it).

You will be paid your compensation by cheque. If you took out a card protection policy and ID fraud protection, you will receive two cheques.

Q. How much will I get?

A. The average compensation payout is around £188. Card protection cost around £30 a year and ID fraud protection was £60 a year. Compensation is essentially a refund of your premiums plus interest.

Q. Can I complain about the compensation amount if I don’t think it was enough?

A. Yes, but you have to be quick. There’s a cut-off date of 30 days after you’ve received your compensation cheque. After that you won’t be able to complain about your compensation. If you are unhappy with the compensation you’ve been given, don’t cash the cheque. Instead, get in touch with the compensation scheme administrators.

Q. Will I have to pay tax on compensation?

A. You will receive compensation plus interest paid at 8% a year (it’s not compound interest, so you don’t receive interest on the interest every year). Tax will be deducted from the interest payments at a rate of 20% but not from the compensation.

Q. Are all policyholders included in the scheme?

A. No, not necessarily. This scheme will only take claims from people who bought or renewed their card or ID fraud protection policy after 14th January 2005. It also only includes those who bought ID fraud protection over the phone, not those who bought it online.

SAVVY TIP: The scheme won’t take claims for compensation from anyone who bought it as part of a packaged bank account. If you have a complaint about that, you have to complain directly to the bank or building society and then, if you’re not happy, to the Financial Ombudsman Scheme.

If you are owed less than £5 in compensation or if, for example, a relative bought a policy but they died before 27th June 2013, they won’t be included as a scheme creditor.

Q. I bought a policy before 14th January 2005. Can I claim compensation through this scheme?

A. If you bought a CPP policy before 14th January 2005, you won’t get any compensation for the years you had it up to January 2005. If you cancelled it before 14th January 2005, you won’t get any compensation at all. However, if you bought it before January 2005 and renewed it after that date, you may be entitled to compensation for the period between January 2005 and March 2011, when CPP changed the benefits of these policies.

SAVVY TIP: If you haven’t received a letter and think you should be part of the compensation scheme, ring CPP on 0800 0834393.

Useful links:
There’s information about the redress scheme on the CPP redress website.

Related articles:

CPP card and ID fraud protection – what you need to know

Five steps to take if you are the victim of identity fraud

ID fraud protection company CPP has been fined £10 million

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