’It’s b******s’: Founder of firm that mis-sold insurance to SEVEN MILLION customers gives his crude assessment of £1.3BILLION compensation order
2013-08-22 0:00

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




Related Articles


Latest News from our Front Page

Your Smartphone Could be Tracking You Every 3 Minutes, Study Says
2015-04-01 2:24
Your apps want to know where you are Smartphone apps regularly collect large amounts of data on users’ locations, sometimes as often as every three minutes, new research suggests. Researchers at Carnegie Mellon University conducted a study where they asked 23 people to use their Android smartphones normally, and tracked location data requests from each device with specially designed software, the Wall ...
Facebook accused of tracking all users even if they delete accounts, ask never to be followed
2015-04-01 2:14
A new report claims that Facebook secretly installs tracking cookies on users’ computers, allowing them to follow users around the internet even after they’ve left the website, deleted their account and requested to be no longer followed. Academic researchers said that the report showed that the company was breaking European law with its tracking policies. The law requires that users are ...
'Gay cake' bakery discriminated against client over sexual orientation, court told
2015-04-01 2:37
David Scoffield QC, acting for the bakery, said if Lee’s argument was right, a Muslim printer could not turn down a contract to print leaflets about the prophet Muhammad, an atheist could not turn down an order saying God made the world and a Roman Catholic printer could not decline making leaflets calling for the legalisation of abortion on demand. Judge ...
Gay rights groups criticize Indiana religious liberties law
2015-04-01 0:10
Editor's note: Would it be ok if a court forced a bakery operated by homosexuals, to make a cake for a Christian that says: "Homosexuality is a sin"? What would the reactions be? One way tolerance? Respecting peoples beliefs extends in all directions or in no direction. Indiana Gov. Mike Pence (R) signed a religious liberties bill into law Thursday that has been ...
Daily Show's Trevor Noah under fire for Twitter jokes about Jews and women
2015-04-01 0:01
Trevor Noah – the surprise choice to succeed Jon Stewart as high-profile host of satirical news program The Daily Show – has come under fire for a series of controversial tweets he posted before his appointment. The South African comedian – son of a Swiss-German father and half-Jewish South African mother – was criticised for having made tasteless jokes about Jews ...
More News »