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Found 2 results

  1. High street banks in discussion with the FSA over sale of credit card protection products. Britain's major high-street banks, already reeling from the PPI scandal, could be forced to pay out millions more pounds in compensation to customers for a widely mis-sold card protection product. The banks are in discussion with the Financial Services Authority about how this could be paid after the watchdog announced it had hit identity theft and credit card insurance company CPP for £33.4m in fines and compensation to customers. Of the £33.4m, CPP is provisionally putting aside £14.5m to be paid to customers mis-sold its card protection and identity protection products between January 2005 and March 2011. However, this only covers direct sales made by CPP; the vast majority of sales were made via high street banks including Santander and HSBC. A number of the banks "introduced" their customers to CPP by affixing a sticker to new credit or debit cards sent to customers. The sticker prompted the customer to call a number, which was CPP's, either to activate the card or to confirm receipt of it. When the customer did ring, CPP also used the opportunity to offer card protection and/or identity protection to the customer. More: http://www.guardian.co.uk/money/2012/nov/15/banks-exposure-cpp-mis-selling-investigation
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