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.
– Tracey McDermott, FSA Director of Enforcement and Financial Crime
While CPP's products were relatively inexpensive, they were sold widely and CPP encouraged its sales agents to be overly persistent. This exposed a very large number of customers to the unacceptable risk of buying products they did not want or need."
– Paul Stobart, new CPP Chief Executive
We are deeply sorry for the errors and wrongdoings of the past and are paying a heavy penalty through what is a large fine."