’It’s b******s’: Founder of firm that mis-sold insurance to SEVEN MILLION customers gives his crude assessment of £1.3BILLION compensation order
By Becky Barrow, James Salmon and Hugo Gye | dailymail.co.uk
The founder of the controversial company at the centre of the banks’ latest mis-selling scandal today blasted the deal to return £1.3billion in compensation to duped customers.
Around 7.5million people who were persuaded to buy useless insurance against identity theft for their credit cards will share in the payout, regulators said today.
13 of the biggest banks and building societies referred customers applying for cards to CPP, which sold ‘card protection’ and ‘identity protection’ policies, either directly or through the banking giants.
Today the firm’s largest shareholder, Hamish Ogston, described the size of the compensation pot as ’b******s’ and a ’’ridiculous figure’.
He predicted that not all eligible consumers would claim for a refund, saying: ’There’s never been a compensation redress scheme in history where it’s been 100 per cent.’’
Mr Ogston, who owns 57 per cent of CPP but stood down from the board in June, accused the regulator FCA of ’sensationalism, by quoting a huge 100 per cent rate’.
The policies cost up to £84 a year but were utterly meaningless. Customers do not need insurance for fraudulent transactions on lost or stolen credit or debit cards because they are not liable for unauthorised card payments, which are automatically refunded by their bank.
For example, a bank would send a new credit card to a customer, with a sticker on the letter asking them to telephone a number to activate the card.
When the customer called the number, they were put through to CPP, which activated the card but also took the opportunity to sell the useless insurance policies.
’Customers were given misleading and unclear information about the policies so that they bought cover that either was not needed, or to cover risks that had been greatly exaggerated,’ the Financial Conduct Authority said in a statement this morning.
’As well as CPP selling directly to customers, High Street banks and credit card issuers introduced millions of customers to CPP.’
The banks involved in the settlement are Bank of Scotland, Barclays, Canada Square Operations (formerly Egg), Capital One, Clydesdale, Home Retail Group Insurance Services, HSBC, MBNA, Morgan Stanley, Nationwide, Santander, the Royal Bank of Scotland and Tesco Personal Finance.
Read the rest of the article at dailymail.co.uk
Latest News from our Front Page
Pressure from the United Patriots Front Stops Mosque Plan
Pressure from the United Patriots Front appears to have killed off a mosque development in Narre Warren North.
The City of Casey council now looks likely to withhold planning approval for the development in a special meeting set for Tuesday night.
A council report, to be considered by councillors on Tuesday, recommends that the approval be blocked.
The mosque opponents’ cause has been helped by councillor ...
Police face questions over the influence of the Freemasons
South Yorkshire Police today face questions over whether powerful 'secret society' the Freemasons held sway over the force at the time of Hillsborough.
Families of victims say that officers who were Masons were promoted into powerful positions despite being ill-equipped, including match commander David Duckenfield.
Duckenfield told the fresh inquests he had been a Freemason since 1975 and became head of his ...
England Bans its Own Flag to Avoid Offending Muslims
St. George's Cross "racist" towards immigrants
Government officials said their city was ‘too multicultural’ to celebrate St George’s Day, England’s version of the 4th of July.
The council said that displaying the English flag may have been seen as “racist” towards immigrants.
Half of Western European men descended from one Bronze Age ‘king’
Half of Western European men are descended from one Bronze Age ‘king’ who sired a dynasty of elite nobles which spread throughout Europe, a new study has shown.
The monarch, who lived around 4,000 years ago, is likely to have been one of the earliest chieftains to take power in the continent.
He was part of a new order which emerged in ...
"Local Residents" Are Filmed Stealing Dozens of Bottles of Water at London Marathon Stop
Editor's Comment: "Local" residents? Why bother blurring their faces? We know who they are.
London marathon runners were robbed of dozens of bottled waters when thieves raided a refreshment area armed with trolleys during today's race.
Nearby residents - including parents with children - were captured on camera piling up crates of free water handed out by volunteers during the 26-mile event.
|More News » |