The FCA has ruled that the insurer CPP and 13 other Banks mis-sold credit card insurance. This ruling will see approximatly seven million credit card holders recieve compensation for unnecessary insurance policies that were added to their monthly repayments.
This may also affect another 18 million credit card holders who renewed their credit cards between 2005 and 2011. The FCA ruled that CPP and the Banks sold these insurance policies that customers did not need and did not properly explain the product.
FCA agrees on compensation for mis-sold card insurance
It is the latest mis-selling scandal to hit Britain’s banks, which have been forced to increase their capital buffers partly because of huge compensation payments.
“Seven million customers, who between them bought and renewed about 23 million policies, will soon receive a letter from CPP giving more information on the process,” the FCA said in a statement on Thursday
“The involvement of the banks and credit card issuers reflects the fact that they introduced customers to CPP’s products and so must share responsibility for putting things right.”
Banks are still paying out compensation for mis-selling payment protection insurance (PPI), which so far has totalled well over 10 billion pounds.
The Financial Services Authority, which was replaced by the FCA in April, fined CPP 10.5 million pounds in November for mis-selling. Card protection insurance costs about 30 pounds a year, with identity protection about 80 pounds annually.
The FCA said customers were given misleading and unclear information about the policies and ended up buying protection they did not need.
The banks, credit card issuers and CPP have agreed to a “scheme of arrangement” which seeks to make processing claims simpler and easier, subject to High Court approval.
The banks and credit card issuers are Bank of Scotland, Barclays, Canada Square Operations, Capital One, Clydesdale Bank, Home Retail Group Insurance Services, HSBC, MBNA, Morgan Stanley, Nationwide, Santander, RBS and Tesco Personal Finance.
The FCA said the first payments were not due until spring 2014.
Original Article: uk.reuters.com/article
Credit Card: News
Mis-Sold Credit Card Insurance
In the latest mis-selling scandal, the FCA has announced that 13 Banks have agreed a compensation arrangement for the mis-selling of Credit Card Insurance and Identity theft protection.
The FCA concluded that some seven million people were sold this insurance on Credit Cards that was never needed. This mis-selling took place on cards between 2005 and 2011, however this does not take into account credit cards that werer renewed during this period which could take the figure upto around 18 million card holders.
Understand Your Credit Score
It’s more vital than ever that you check your credit record, understand what affects your credit score and then get it as squeaky clean as possible. That will give you a fighting chance of getting that mortgage, loan or credit card – and at the very best rate.
Lenders use credit reports to help them decide who to dole out cash to and at what price. You need to show you’re a safe bet or you’ll pay way over the odds in interest.
Can I claim PPI against Barclaycard?
If you purchased payment protection insurance (PPI) with your Barclaycard, then you may be able to make a claim against the company.
The PPI scandal has rocked the nation and resulted in huge numbers of PPI claims involving the UK’s largest financial institutions. Customers who were victims of mis-selling have a right to file a claim for monetary compensation
Credit Card PPI Claims
PPI is Payment Protection Insurance and this insurance has been mis-sold in the UK on credit cards and loans. Over the past 10 years, PPI has been automatically attached to credit cards an loans without the card holder’s or loan recipient’s knowledge.
What is PPI? Payment Protection Insurance is insurance on a loan or credit card that ensures repayment if you are unable to work and make the payments on the card or loan.
Tim Capper reports on Financial Mis-Selling for Maple Leaf Financial. Our aim is to ensure you get honest advice and proper guidance to ensure a suitable recommendation can be made to pursue a financial claim
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