A credit card protection firm based in York has been fined a record £10.5 million after it mis-sold products such as identity theft cover to thousands of customers.
CPP has also agreed to pay an estimated £14.5 million in compensation to customers after the Financial Services Authority (FSA) found widespread mis-selling of products between January 2005 and March 2011.
- The company told customers they would benefit from up to £100,000 of insurance cover, even though this was not needed because they were already covered by their banks.
- The FSA added that CPP sales agents were overly persistent with potential customers and were even given targets for dissuading people who contacted CPP to cancel their products.
- Today's fine is the FSA's joint largest penalty for a retail matter and would have been £15 million if CPP had not agreed to settle at an early stage.