UK's FCA: Card Protection Redress Scheme to Start Mid-February

By Ed Ballard

The U.K.'s finance regulator said people who bought card protection or identity protection products from CPPGroup PLC (CPP.LN), or from their bank, can claim compensation from mid-February.

Seven million people who bought the insurance products will be able to claim, the Financial Conduct Authority said, adding that the total redress bill could be up to 1.3 billion pounds ($2.12 billion).

CPP was fined GBP10.5 million in November 2012 for mis-selling credit card insurance already provided by their bank. The F.C.A. said last August that lenders will refund customers they referred to CPP.

"The F.C.A. has worked closely with CPP, the banks and card providers to set up this consumer redress scheme," Clive Adamson, the agency's director of supervision, said. "This is an important example of firms voluntarily coming together to meet our expectation that consumers get a fair deal."

Customers have till the of August 2014 to claim, the F.C.A. said.

Write to Ed Ballard at [e-mail]