MSE News: Card protection mis-selling: Are you du...

[MSE Helen]

"13 high street banks and credit card companies have agreed to offer redress for mis-sold card and ID theft protection..."

Read the full story:

Card protection mis-selling: Are you due share of £1.3 billion?




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[saras]

The news article is really helpful, but it is important to flag that the payouts won't start coming through until next spring because the legal process involves policy holders having to vote on the scheme first.

The most important thing though is people wont need to use claims management companies because it's likely to be very easy!

[iblametheparents]

What's the situation if you have/had Cardholder Protection on a fee paying bank acount?

[neil_d]

I was sold a CPP policy for identity theft through Barclaycard back in about 1995, which was provided by Sentinel. I have continued paying this every year since. Sentinel were not mentioned in your main article as a mis-selling company. Will I receive a letter from Barclaycard or Sentinel or neither? Thanks

[RustyPots]

About time!
I had a Tesco CC with this on, I have previously argued this was not requested or wanted (I thought it was PPI) however they wouldn't refund.

Am I correct in thinking that I will received notification through the post if I am eligible for a refund? Also I don't have any paperwork now, as I no longer have the card I got rid of the statements will this be a problem?

[fmurphy1970]

I currently have CPP insurance and is due to be renewed soon. I wanted to cancel my renewal when I first heard about the mis-selling and realised I didn't need it. Will I invalidate a possible future claim if I cancel now?

[saras]

Neil-d the scheme only applies to CPP policies so I'm afraid Sentinel customers are not included.

RustyPots, according to the news releases letters will be issued to those included in the refund pot starting on the 29th August. As there are up to 7 million people being contacted I would imagine the letters may take a few weeks to deliver!

[Magicmerly]

I'll echo iblametheparents's thoughts.

What about products as part of a fee paying account, i.e Lloyds TSB Premier account, sentinel card protection and ID aware are part of this account.

[Offworld]

Nationwide recommended the CPP policy to me when I opened an account with them in 2007.

I did raise questions with Nationwide/CPP at the time - but the person on the phone specifically told me that CPP were the company providing lost card & fraud protection on behalf of Nationwide.

So therefore I was led to believe that the payments were required 'just in case'.

I heard about the possible mis-selling of CPP policies from Martin Lewis on Radio 5 Live at the start of this year. I wrote to both CPP & Nationwide. They wrote back (without any delay) and, in a very detailed letter, they explained why they did not believe my claim was valid - no refund.

I was not very pleased with the outcome but rather than challenge it I thought I would wait until more information came out about CPP and I wanted to see if other claimants were being rejected too.

However, I heard CPP mentioned on the news this morning (Thurs 22 Aug) and that letters would be sent out to all those who bought policies.

The postman arrived - and a letter from Nationwide (now that was quick!). They have reviewed my original complaint and reversed the decision. The letter has an offer of all my payments (with the 8% interest) to be refunded. I have to complete a simple form and take it into my nearest branch.

Conclusion : Thank you Nationwide. I've been a happy customer since 2007 and you've just made me an even happier customer.

[callum9999]

I'm genuinely curious how so many millions of people keep getting "missold" things. While I don't doubt some staff lie during the application process, do none of these people actually read the contract? Or is the misselling part because they weren't given a contract? The reasons listed on the article for why it was missold seem pretty tame to me.

[dazza12]

Originally Posted by callum9999

I'm genuinely curious how so many millions of people keep getting "missold" things. While I don't doubt some staff lie during the application process, do none of these people actually read the contract? Or is the misselling part because they weren't given a contract? The reasons listed on the article for why it was missold seem pretty tame to me.

With most of CPP's policies, the protection offered no more than the protection given by law by the bank. It was in effect a useless policy, but many people were led into thinking that it was needed, with scare stories given during the sales process. It actually protected the bank, both saving them money and making them some commission at the same time (which is why the banks are also paying out). Some of the policies were sold by an 'activation' sticker on a card. The reality is that the card did not need to be activated and the calls were actually answered by CPP staff, but getting the customer to sign up under that condition put them in a position where they were under pressure. The FCA have deemed that most of these policies were therefore mis-sold as the sales practice was not in the customers interests.

It's the same with PPI - there were many situations where the way in which it was sold was unfair on the customer - opt out boxes instead of opt in, online applications that wouldn't progress without selecting PPI, the sticker on the card trick as above, not listing medical conditions/employment situations where someone wouldn't be covered, or sales scripts that were obviously hard selling instead of letting the customer decide on the purchase.

There are unfortunately a few people who made a conscious decision to purchase who would have been covered, where they feel that having insurance policies that are part of a mis-selling campaign entitles them to a payout. Sadly, people like this are often led on by the countless adverts and spam calls from claims companies which seem to paint the whole situation in this light and claims management companies that hard sell their services.

[I luv cats]

Didn't they catch some people by making you ring-up to activate a new/replacement debit/credit card you received AND at the same time bend-your-ear about card-protection?


Was it the case where a test was done somewhere where your new card would still work if you didn't phone up.

[dazza12]

Originally Posted by I luv cats

Was it the case where a test was done somewhere where your new card would still work if you didn't phone up.

More than a test - it became common knowledge that such 'activations' were not required.

Capital One and MBNA were two who commonly used this tactic.

[clairecymru]

I wrote to CPP a while ago saying that I thought I had been missold my policy (which I took out in 1998 and cancelled in 2011) as I was unaware at the time of taking it out that banks had to take some responsibility for identify fraud. They told me that Abbey National had sold me the policy and they had passed my complaint to Santander. A month later I had a phone call from Santander who confirmed that my policy had been missold and I they deposited £700 into my account.

[maggy50]

I had CPP on one or two accounts but have moved address since
and no longer deal with the original cards now being paid.

Therefore I will send them my new address and see what the outcome is.

[stclair]

I've moved address since my policy was taken out.

What happens in them circumstances?

[st999]

I've lost out again on compensation for mis-selling .

I've never had PPI and I never had credit card and identity theft protection either.

I've lost £1,000s in compensation I'm not entitled to.

[Aurorax]

This is addressed to Martin's article I don't know why Lloyds are saying they didn't sell CPP, as I used to work for Lloyds 2006-2009 and can confirm they used to sell the protection under the name Privacy Guard on a trial of £1 for first month and then sky rocketed to around £5.99 a month (and it give access to credit files, 'fraud insurance'(I put in comma's as it was basically impossible to claim on it) , blocking all cards to one number etc just as your article suggested, so maybe I suggest pushing Lloyds as they are clearly lying in this situation. they also used to sell a rip off product called sentinel card protection which did a similar thing except that it only blocked cards if lost.)as all the staff in credit card services were pushed to sell the product on nearly every call, from people I know that still work there it was changed to ID aware or something of a similar name they keep changing the name. Unless Lloyds are claiming as its aimed at protecting the id of the person, however in the credit card department we were pushed to sell it for protecting peoples credit cards and general Identity safe AKA as misselling.

[dazza12]

Aurorax,

Many of Lloyds policies were actually sold by another company, Sentinel. These haven't been subject to the mis-selling investigation. That's not to say that they won't be next, but at this stage it's just policies from CPP.

[Aurorax]

Ah ok I guess that would make sense, still a bit cheeky for Lloyds to say they never sold them, it may have never been true in house products, but they did certainly sell, them hopefully they will be under fire shortly, I remember feeling sorry having to flog those products to customers knowing that they did nothing more then you could have got for free but I wasn't allowed to tell the customer that or I would lose my job. I have since left the company thankfully.