Mis-Sold CPP Card Protection & Identity Insurance? Claim Compensation Now

by , Last Updated: 11 November 2014

As the banking sector serves up yet another scandal, we show you how to claim compensation if you were mis-sold credit card protection and identity insurance.

couple discussing finances with advisor

The FCA has ruled that CPP credit card protection insurance and identity protection policies were unfairly sold to millions.

That means another mis-selling scandal, and another big bucks compensation package that you could be owed a slice of.

We explain how to tell if you were mis-sold and exactly what you need to do to claim.

The CPP mis selling scandal

This latest banking scandal centres on two insurance products sold by banks, credit card providers and by the company that underwrote the policies: Card Protection Plan Ltd (CPP). 

CPP credit card protection and identity protection plans were sold alongside credit cards to give protection against credit card fraud and identity theft, respectively. 

Typically the policies were sold when you rang up your card provider to activate a new credit card, however the risk was overstated in many cases and the providers often 'forgot' to mention that they were non-essential so many people took them out unnecessarily.

The mis-selling dates back over 10 years costing consumers anywhere between 30 and 80 per year per policy - all spent on unwanted and unnecessary insurance.

Having fined CPP a sum of 10.5 million in November 2012, the Financial Conduct Authority has now ordered them to pay customers 1.3 billion in compensation.

CPP can't afford that amount, so instead the card providers that were originally involved in selling the policies have set up a scheme to compensate their affected customers directly.

Who mis-sold CPP insurance?

Thirteen banks and credit card companies involved in mis-selling CPP card protection and CPP identity protection policies have signed up to the compensation scheme.

The culprits included: Bank of Scotland, Barclays, Canada Square Operations (formerly Egg Banking), Capital One, Clydesdale Bank, Home Retail Group Insurance Services, HSBC, MBNA, Morgan Stanley, Nationwide, Santander, RBS and Tesco Personal Finance.

If you were mis-sold a policy from a bank that's not listed above, CPP itself should be responsible for compensating you.

Were you mis-sold credit card insurance?

In all, more than seven million customers were mis-sold CPP insurance; taking into account renewals around 23 million policies are due to be reimbursed.

Approximately 18 million of these were existing plans renewed after January 2005 and about 4.5 million were new policies bought from January 2005 onwards. They were mis sold if:

  • You didn't realise the plan was being offered by CPP, a third party
  • You weren't aware you were already covered by the bank's own anti-fraud policies
  • Your bank told you it was an essential purchase
  • You purchased your policy based on unclear information
  • The risks the insurance protects against were overstated

If you were sold CPP insurance alongside a credit card, think about how you were offered the policy. Cover that was taken out or renewed from January 2005 onwards could put you directly in line for repayment.

If you had a CPP policy that ended before January 2005 you won't be eligible for the scheme and, if you want redress, you'll have to lodge a complaint with CPP independently.

How to get CPP compensation

If you have moved house since buying your policy, contact CPP to change your address on their files. Ongoing, CPP will be writing to all customers it believes are due compensation to sort out the compensation scheme:

  1. First letter from CPP: No action was required, it simply explained the scheme and what you'd need to do moving forward. This was sent in September 2013
  2. Second letter from CPP: you were asked to vote either for or against the proposed compensation scheme. The scheme received the majority 'YES' vote it needed to progress through the High Court. The vote was passed in January 2014
  3. Third Letter from CPP: this letter should be next to arrive, from 10th February 2014, asking if you want to be considered for compensation. Check your historic finances as noted above to find out if you were mis-sold a policy and make sure you respond with a 'YES'.

    If you don't receive the letter, gather as much evidence as you can about your CPP policy and related card(s) and write to CPP direct, asking to be considered for compensation
  4. CPP claim form: forms should be sent with CPP's February letter, or directly as a result of your correspondence with CPP. To claim compensation from CPP or your bank you'll need to complete the form, sign it and return it by 30th August 2014

If you have any questions regarding the scheme you'll need to refer to the Financial Conduct Authority CPP guide and contact the CPP Redress Scheme.

If you're not happy with the way compensation scheme deals with your claim you can refer it to the Financial Ombudsman. However, the Ombudsman can only deal with your claim according to the scheme's rules and you'll lose even this recourse if you miss the August deadline. 

How much CPP compensation will you get?

You should have all premiums since 14th January 2005 refunded (this is the date the FCA took over regulation of such products) with 8% interest added to the net sum.

Any claims paid out since that date will be deducted from your personal redress.

Payouts for identity protection and CPP card protection claims will be paid in spring 2014, with customers expected to receive around 170 each on average.

Your bank or card issuer will pay any compensation directly into your specified account

What if you don't receive a letter from CPP?

You won't receive a letter if you're not eligible for the compensation scheme. This could be for one of the following reasons:

  • you took out your policy before 14 January 2005 and made no payments for it after this date
  • you took out a policy after March 2011 when CPP had changed the way it sold protection policies
  • you held an identity protection CPP policy that was not purchased by telephone
  • the policy holder has died
  • the bank or card issuer you purchased your policy from is not part of the compensation scheme
  • you have already received more back (via paid claims or refunds) than you would be owed under the compensation scheme
  • the amount of compensation you are owed is less than 5, which is the minimum amount required to be part of the scheme

However, you don't need to take it lying down. If you think you should have received a letter, but didn't, gather as much information as possible on your CPP policy and dispute the reasons listed above.

Even if you aren't eligible for the compensation scheme, you can still try to claim your premiums back independently. Plus, if you weren't included in the scheme the Financial Ombudsman won't be restricted by it either.

CPP card protection complaints should be sent direct to CPP and copied to the bank or card issuer you believe mis-sold your policy, e.g. claiming CPP from MBNA. You can find out more on the CPP Redress Scheme website.


These things are sold by instilling fear into the people who can usually least
afford to pay for them, disgraceful!

by MACK, 12 Nov 2013

do we have a telephone number to ring should we have PPI regarding this if we feel missold it through mortgage.?As not aware if should do it through CPP or the card issuer,as not always CPP.?

by markel, 19 Nov 2013

I've got the claim form, and know I had got CPP but can't remember anything about it. So I wonder what to put in the 'why you think you can claim' part of the form?

by healthy22, 12 Feb 2014

For the Card Protection Form, I wrote something along the lines of "I believe I was given misleading information on the CPP leaflets. They said by having the policy I would be covered for unauthorised transactions. But this was not necessary as later I knew that my bank would have covered the costs, so there was no need in having purchased this policy." For ID Protection I wrote "The CPP leaflets heavily exaggerated the risk of ID theft and how I would be held liable for money taken out by someone else using my details. They gave me the impression that without their policy I would be in serious trouble, so I purchased the policy. But later I realised that banks cover the cost of ID fraud as long as I didn't show negligence."

by happy2004, 12 Feb 2014

I just put did not get clear infomation on my policy's

by denni92, 13 Feb 2014

I had no idea I was covered by Bank, just worried incase items were lost etc

by MACK, 13 Feb 2014

money expert guy says you don't need to provide lots of information just say missold and post it back you are guaranteed your money back if you have received a letter and claim for so send it back and get some free money i posted mine off today good luck everyone you don't even need a stamp they provide the envelope go guys and girls go

by jennyas92, 25 Feb 2014

The whole thing has been a disgrace, reminds me of insurance companies who tell you that you are not covered after they have taken your money, its all about large companies screwing little people, they really do not deserve
to be in business.

by MACK, 25 Feb 2014

Template for mis sold cpp

by denni92, 13 Feb 2014

Still waiting third letter, we do not always keep this info when we take a new policy out
what then?

by MACK, 13 Feb 2014

I cant remember if i did have it or not but if i did i certainly wouldnt have got it willingly and would have been mislead i have no records going back that far now as i dont keep them still sent the claim form back if i get something all well and good if not then fair enough but at least i have filled the claim form in to try

by sezzaden, 15 Feb 2014

Wonderful and thank you for the info.

by angeld, 15 Feb 2014

hi, I cant remember how or why I purchased my policy but I think it may have been through an extra offered with my Barclays additions account, I am unsure of the reason I should put on my form as to why I think I was mis-sold and request compensation. any ideas or hints how I can complete the form???

by dodo111, 18 Feb 2014

I bought the protection many years ago. I was recommended that I take it out by my Bank, Nat West. when I got a credit card from them. I'm not sure but I think it was the bank that collected the first subscription - could this be true. I don't know how long ago it was but I think it was in the 80's or 90's - could that be right? So long ago. Anyway sending back my letter so fingers crossed.

by beesknees, 21 Feb 2014

The 'compensation' offer is only for return of payments, plus interest. Is this compensation? I think not. It is merely a return of payments wrongly taken. True compensation should be a reasonable sum, over and above these payments.
Doc Holliday

by DocHolliday, 24 Feb 2014

I agree, it should be more than payments and interest, I returned a form to them with updated info, they told me they had not received it. I was very worried to say the least, thinking all the updated info had got into the wrong hands. Speaking to them on the phone I realised they must have received the info as they told me something that was part of the update, they would not have known this if the forms had been lost in the post! Does not say a lot for them when I was paying for peace of mind does it?

by MACK, 25 Feb 2014

Just received my ccp form to fill in. It's been so long I don't no what to write

by davidpo50, 24 Feb 2014

have just received my form to fill in, I note it says by AUGUST! I have been sold CCP by
CPP and Barclays I think! they tried to get me to pay extra re identity fraud but I stated
I always shred documents and could not afford to pay more, The person was very persistent over the phone!

by MACK, 25 Feb 2014

Money saving expert site has standard reply templates...

by renzo, 26 Feb 2014

I have filled in all the forms sent to me and have another form ready to post with the August deadline...however I have received in the post today an offer of £1653.00 compensation. This was for a M & S policy for card protection that was taken out years ago...poss back to late 80's, that I have just paid every year !!! how silly !!!the yearly cost was approx. £25 per year. I am really not sure how my offer has been calculated ???

by amlyn9, 26 Mar 2014

had four policies with cpp..filled in forms and they have paid up on one .....why not other three?

by snappe, 15 Apr 2014

I run a small business and one day I had a phone call form my accountant to say there was no money in the account to pay salaries. I was horrified. Over £35,000 was taken out of the account in a variety of increments. I immediately got on the phone to barclays fraud to explain the situation. OMG running your own business is difficult without having to deal with this. I was nervous and my thoughts running wild thinking all sorts of things, how could this happen!! I spoke with Barclays fraud and they put me through to an other department that explained I needed to have ID protection as what I already had was card protection and that was something very different to card protection which we already had bought several years before. I really had no idea what they were talking about my mind was cloudy with the recent events so I just said yes ok and both me and my husband bought these new policies. Afterwards a few days I thought "well if that wasn't capitalising on the emotional sell then nothing much could get close", still to this day we have no idea who or what caused the 35,000 loss and had to wait for some weeks for the investigation to finally agree it was fraud but we don't know who or what?? I found the whole experience fraudulent. I knew at the time I should have complained about the way the ID policy had been introduced and sold to me but I had a small chid worked full time in the business, I basically didn't have time. I am now filling in the form with this information.

by juliecreative, 10 May 2014
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