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.