How to claim CPP compensation

Seven million people who were mis-sold card or identity protection products from Card Protection Plan (CPP) Limited will be able to claim compensation from mid-February.

CPP was fined £10.5million in November 2012 for the widespread mis-selling of card protection and identity protection policies. Now, CPP and 13 high street banks and credit card issuers which sold CPP products have agreed to pay consumer redress to those affected.

Here’s a look at what happened and how to claim CPP compensation.

What happened?

Since 2005, card and identity protection policies were mis-sold to customers, either directly by CPP, or by banks and credit card issuers when they called to activate a credit or debit card.

These customers often weren’t given all the relevant information they needed, or weren’t given clear enough information about the products.

The following banks and card providers were involved:

  • 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

What happens now?

Affected policy-holders will receive a letter about the redress scheme this month. Customers who had both card protection and identity protection policies will receive two letters.

The Financial Conduct Authority (FCA), which handed down the fine and ordered the redress scheme, is urging those affected NOT to use a claims management company or law firm to complete the forms. They should instead complete the forms and return them by post themselves, by the end of August.

The regulator is asking those concerned to think carefully about whether or not they value their policies, as anyone making a claim for compensation will have their policies cancelled.

If you think you were mis-sold a card of identity protection policy by CPP, or one of the 13 banks and card issuers, but don’t receive any letters about the redress scheme by the end of February, you should contact 0800 083 4393.

Even the 2% of customers who voted against the redress scheme will still receive letters and be eligible for compensation.

How much compensation is on offer?

The amount of compensation you’re entitled to will depend on how long you held your policy or policies for. Card protection policies cost around £30 a year while identity protection policies cost around £80 a year.

The FCA estimates the maximum total redress bill for all customers to be around £1.3billion. Its director of supervision, Clive Adamson, said: “If you believe you were mis-sold one of these products, fill out and return the claim form to make sure you get your money back. Don’t put it off till the last minute.”


Meanwhile, Lloyds Banking Group is increasing its provision for the widespread mis-selling of payment protection insurance (PPI) by another £1.8billion, bringing the total it has put aside to almost £10billion. Collectively, UK banks have made provision for PPI redress totalling £20billion.

You can read more about making a claim for PPI here.

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