’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

Facebook’s New ‘Chinese-style’ Political Censorship System Goes Global
2015-01-29 4:35
Last week 21WIRE reported on Facebook’s new communitarian policy whereby readers can ‘flag’ content as “fake news” if they believe it’s not real, or if they do not like it. In the wake of the Charlie Hebdo False Flag event, the social media giant is now allowing governments to determine what is ‘good free speech’, and what is not. “An article ...
"Cheerful" Dutch Financier Becomes 4th ABN Amro Banker Suicide
2015-01-28 23:47
Following the deaths of 36 bankers last year, 2015 has got off to an inauspicious start with the reported suicide of Chris Van Eeghen - the 4th ABN Amro banker suicide in the last few years. As Quotenet reports, the death of Van Eghen - the head of ABN's corporate finance and capital markets -"startled" friends and colleagues as ...
West’s tributes to late Saudi King reveal hypocrisy not democracy
2015-01-27 2:16
Hypocrisy is not usually regarded as a virtue of leadership, yet judging by the gushing tributes paid to Saudi Arabia’s King Abdullah by various Western governments and establishment figures on his death, there are those who believe it should be. In the UK this hypocrisy has been stretched to breaking point with the decision to fly the flags over Downing ...
Millions of GMO insects could be set loose in Florida Keys
2015-01-27 2:34
Millions of genetically modified mosquitoes could be released in the Florida Keys if British researchers win approval to use the bugs against two extremely painful viral diseases. Never before have insects with modified DNA come so close to being set loose in a residential U.S. neighborhood. "This is essentially using a mosquito as a drug to cure disease," said Michael Doyle, executive ...
Furguson Scared The Super - Rich So Bad They're Planning Exits
2015-01-27 0:22
According to a speaker at the World Economic Forum in Davos, Ferguson and Occupy absolutely terrified the world’s super-rich, and now they’re buying airstrips and farms in remote locations to escape to. At the World Economic Forum in Davos, Switzerland, which was held between January 21-24, over 2,500 leaders in the fields of business, international politics, academia and journalism met to discuss ...
More News »