Customers were 'misled' about protection policies

Customers were given "misleading" and unclear information about insurance policies by banks and credit card firms, the Financial Conduct Authority said.

"Customers bought cover that either was not needed, or to cover risks that had been greatly exaggerated," said the FCA.

The £1.3bn compensation payment for mis-selling of Card Protection Plan (CPP) policies affects two insurance products:

  • ‘Card Protection’, which cost approximately £30 per year
  • ‘Identity Protection’, which cost approximately £80 per year

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Firms' £1.3bn mis-selling bill

Major high street banks and credit card companies face a bill of up to £1.3 billion for compensating customers mis-sold CPP Group's credit card and identity theft protection.