Seven million customers, who between them bought and renewed about 23 million policies, are likely to be eligible for compensation after banks and credit card issuers reached an agreement with the Financial Conduct Authority (FCA) today.
Here's how it will work:
- Affected customers will be contacted by CPP from 29 August 2013 onwards, explaining what they can do next.
- Compensation will be available to any customer who bought or renewed the Card Protection or Identity Protection products since 14 January 2005.
- Customers will be paid 8 percent interest on the amount they are owed.
- The FCA says applying for compensation will be "a simple process", with customers asked to complete a form.
- Compensation is not expected to be paid out until Spring 2014.
- The delay is because the compensation scheme must first be voted on by customers and approved by the High Court.