One of the UK’s biggest providers of ID theft insurance, CPP, has applied to have the listing of its shares suspended. Trading in the company’s shares has also been halted.
The move follows the Financial Services Authority’s decision over the weekend to ask the company to review its past sales and to make changes to its policy renewals process. An FSA investigation has raised concerns over sales of CPP’s Card Protection and Identity Protection products in the UK.
While CPP has acknowledged that a past business review is appropriate, its board claimed that the FSA’s requirements are disproportionate and threaten the viability of the business.
In a statement to CPP customers, the FSA said: ‘It is now likely CPP will need to review some past sales and decide whether customers should receive redress payments. We are continuing our investigation.’
What is CPP?
CPP is one of the largest providers of card and identity theft protection products. It employs 1,341 people in the UK and 1,969 worldwide.
In 2011, CPP announced it was being investigated by the Financial Services Authority for mis-selling ID theft cover.
Many bank customers who called their bank to activate a new card were previously put through to companies like CPP, which would then seek to sell them ID fraud insurance and other products. Hundreds of thousands of card protection products have been sold by banks and standalone insurers in the UK.
One of CPP’s biggest clients, Barclaycard, stopped using CPP for card activation purposes in March 2011, as did RBS.
Which? advice for card protection customers
ID theft insurance is a product that most people will never use, yet hundreds of thousands of policies have been sold. If your identity is stolen, you are entitled to claim losses back from your card provider, so long as you were neither careless nor negligent.
If you think you’ve been mis-sold an ID fraud protection policy, you can complain to your provider, cancel your policy and ask for a refund. If they refuse, you can take your complaint to the Financial Ombudsman.
To find out how to make a complaint and claim back the premiums you’ve paid, read our identity theft insurance guide.