Following the fine given to CPP last week, Which? helps you to decide what to do next if you think you’ve been mis-sold ID theft insurance.
CPP fined £10.5m last week
Card and ID theft protection company CPP was fined £10.5m last week, and faces a total bill of £33.4m including for mis-selling insurance products.
Evidence from the Financial Services Authority (FSA) highlighted two main issues. CPP sold its card insurance for £35 a year saying customers would get up to £100,000 worth of insurance cover. However, potential losses on debit and credit cards are already covered by the banks.
The company also overstated the risks and consequences of identity theft during sales of identity protection, sold for £84 per year, saying that ‘1 in 5 of us will be a victim of ID crime by the end of the year’ to assist in selling the product when in fact no such claim had been made. Again, any potential losses through ID fraud are covered by the banks concerned.
Have you been mis-sold ID theft insurance?
The Which? ID theft insurance mis-selling checklist can help you to decide if you’ve been the victim of dubious sales tactics. Did the salesperson promoting ID theft insurance do any of the following:
- Use scaremongering – did they over-state how easy it is to have your ID stolen?
- Did they 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 to some of the features of the product?
- Find ways to keep you on the phone despite you making attempts to end the call?
What you should do if you are a victim of mis-selling
If you answered yes to one or more of the above questions – make a complaint to your ID theft insurance provider to cancel your policy and ask for a refund. You may need to ask your bank for the name of your provider if you thought you were dealing directly with your bank. The common providers are CPP, PrivacyGuard, Experian and Sentinel.
If the complaint is refused, or the matter is not resolved to your satisfaction within eight weeks, you can refer the matter to the Financial Ombudsman Service. Our guide to making a financial services complaint will help you.
If you answered no – you might not have been mis-sold ID theft insurance in this instance, but you may still want to cancel your policy by contacting your insurance provider.
- ID theft insurance – how it works and what to do if you’ve been mis-sold
- The Which? ID theft insurance mis-selling checklist – have you been mis-sold this product?
- ID theft insurance frequently asked questions – we answer your key questions