I have been mis-sold identity theft insurance, what should I do?

The CPP Compensation Scheme has closed. Any claims made after 28th February 2015 will most likely be unsuccessful.

CPP compensation closed

The CPP Compensation Scheme has closed. Any claims made after 28th February 2015 will most likely be unsuccessful.

But, in some cases you may still be able to make a claim.

  • Did your policy cover a period before January 2005?
  • Did your policy come from a company other than CPP?
  • Or do you feel you were left out of the redress scheme and shouldn’t have been?

If you answer yes to any of these you can use our advice to find out if you’re able to make a claim.

FCS mis-selling fine

On 15 November 2012, the Financial Conduct Authority (FCA) fined the company Card Protection Plan (CPP) for the widespread mis-selling of identity theft insurance and card protection plans.

With our experience of the mis-selling of Payment Protection Insurance (PPI), we’re familiar with the dubious sales tactics used by some companies.

Checklist

You may have been mis-sold if you answer 'yes' to any of the following:

  • Scaremongering Did they over-state how easy it is to have your ID stolen, telling you that you are liable for losses incurred if it is stolen?
  • You're liable  Were you told you are liable for losses incurred if your identity is stolen?
  • Missing information  Did they neglect to mention that you would need internet access in order to access some of the features of the product?
  • Delaying tactics  Did they find ways to keep you on the phone despite you making attempts to end the call?

CPP mis-selling

If you've been sold an ID theft insurance policy, you might have been contacted by CPP directly, but it's more likely that you were referred to CPP by your bank.

Banks and other credit card companies attached a sticker to their new credit and debit cards sent to their customers.

The sticker prompted you to call a number to either activate the card or to confirm that the card had been safely received. 

The number actually belonged to CPP, who then tried to sell you card protection or identity protection insurance. 

With card protection or identity protection insurance, you pay £35 a year for a policy that costs just 60p to actually provide.

Mis-selling checklist

If you believe you've been mis-sold ID theft insurance, you should read our checklist and issue a complaint to your insurance provider

Did the sales person do any of the following when selling you the ID theft insurance?

  • over-state how easy it is to have your ID stolen, telling you that you are liable for losses incurred if it is stolen?
  • tell you that you are liable for losses incurred if your identity is stolen?
  • neglect to mention that you would need internet access in order to access some of the features of the product?
  • find ways to keep you on the phone despite you making attempts to end the call?

Cancelling your ID theft insurance

If you answered 'no' to the checklist above, you might not have been mis-sold ID theft insurance in this instance. 

But you may still want to cancel your policy, so you should contact your provider to do so. 

Remember that unless you contact the insurance company to cancel these products, then they will automatically be renewed.

CPP redress scheme

Following an agreement with the Financial Conduct Authority (FCA) and 13 high street banks and credit issuers, CPP will be offering compensation to policyholders. 

From the 29th of August 2013, policyholders will receive a letter from CPP with more information about the compensation scheme and customers will be invited to vote on whether they want the scheme to go ahead. 

If the scheme is approved by the majority of customers as well as the High Court, CPP will write to policyholders again, asking whether they would like to be considered for compensation. 

If you receive a letter, you will need to complete and sign the claim form, and return it to the CPP.

If you don't return this form, you will loose the right to redress, and continue paying for the insurance product. 

The compensation you're entitled to will be the amount you've paid for the policy since January 14th 2005, less any money paid out by the policy, plus 8% interest. 

If you had policies with more than one bank, you will need to fill out claim forms for both policies, in order to receive any redress.  

Policy premiums paid pre-2005

For CPP premiums paid pre-2005, you need to complain directly to your credit card company. 

Use our template letter to claim redress on a mis-sold credit card insurance policy

Who can claim from CPP?

The scheme is open to all customer who bought or renewed a Card Protection Product or Identity Protection since the 14th of January 2005 from CPP, or a bank or card issuer participating in the scheme. 

The following banks and card issues have committed to the scheme:

  • Bank of Scotland 
  • Barclays Bank 
  • Canada Square Operations Limited
  • Capital One (Europe) 
  • Clydesdale Bank 
  • Home Retail Group Insurance Services Limited
  • HSBC Bank 
  • MBNA Limited
  • Morgan Stanley Bank International Limited
  • Nationwide Building Society
  • Santander UK Plic
  • The Royal Bank of Scotland
  • Tesco Personal Finance 

If your are eligible for the scheme and due compensation, there is no need to use a claims management company to help you seek compensation - you can do it for free yourself. 

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