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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.

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What is the CPP?

Banks and credit companies were today hit with a £1.3bn bill for mis-selling policies from the Card Protection Plan (CPP) Group:

  • The CPP is a British company offering "life assistance products"
  • These include protection against loss, theft and fraudulent use of financial cards, identity theft protection, phone protection insurance and travel assistance
  • Its Airport Angel product gives members access to airport lounges
  • Many banks sold CPP products protecting against identity theft and card fraud, but these were useless to customers because they were already covered by their bank.
  • Banks received a commission for selling CPP products
  • In November 2012, the CPP was fined £10.5m for the mis-selling of its products
  • The CPP employs more than 1,000 people at its York base, but in March it asked staff to consider voluntary redundancy to reduce operating costs
  • The firm's share price has plummeted since the FSA's probe into its products.

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