Which banks still sell card protection products?Unnecessary card protection pushed on consumers

25 June 2011

ID theft insurance

Banks are continuing to use third party companies to activate cards

Several British banks are still leading customers to buy card protection products when they call to activate their debit and credit cards.

Customers who are expecting to speak to bank staff to activate their cards are frequently given the contact details of a third party company that then seeks to sell them these products, despite the financial benefit of the products being covered by existing banking codes. 

CPP investigated over ID theft insurance mis-selling

Earlier this year, CPP - one of the largest providers of card and identity theft protection products - announced it was being investigated by the Financial Services Authority for mis-selling ID theft cover. In response, CPP voluntarily suspended all new sales of identity protection when customers call to activate cards.

Despite the investigation banks, such as Santander, have continued to pass customers to CPP for card activation purposes. 

Thousands of card protection products have been sold by banks in the UK to date. But if someone's identity is stolen they are entitled to claim losses back from their card provider, if they were not careless or negligent.

Barclaycard stopped using CPP for card activation purposes in March 2011, as did RBS. But Barclaycard says it isn't going to contact customers who may have been mis-sold to. 

Some customers told Which? that they found CPP agents' sales tactics 'offensive' and tantamount to 'scaremongering'.

Which? advice for card protection customers

Anyone who has been mis-sold card protection products can find out how to make a complain and claim back their premium by visiting the identity theft insurance guide.

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