By Martin and Amy Updated 24 Apr 2015
The official date for a huge redress scheme worth Ј1.3bn for people mis-sold products by CPP has now closed, but you can still make a claim for old CPP policies.
Did you have Sentinel Card Protection? There's a similar redress scheme to CPP being set up for customers who were flogged worthless card security insurance to cover fraudulent credit card use by Sentinel. For more on the scheme and why you need to vote 'yes' to get your money back read the guide.
What is CPP?
CPP is a worldwide financial company. It has a variety of products, but there are two specific ones, sold alongside both debit and credit cards that were mis-sold:
Card protection products: These allowed customers to call one number to have all lost and stolen cards stopped. Basically, CPP made a few phone calls for you. (Use Cardsgone.com for an easy, free online alternative.) Plus, crucially, if your card was lost and stolen it would cancel it and cover you for fraud.
ID fraud protection: This promised to give you reports about your identity (no great shakes – you’ve a statutory right to a credit report for Ј2), and cover you for the risk and liability of having your identity stolen.
CPP no longer sells these policies in the UK (though it still does elsewhere). It now focuses on "card rescue" – a revamped version of card protection without the insurance element – and Airport Angel, which gives access to airport lounges worldwide.
How did CPP mis-sell?
When you got a credit or debit card, there was an ‘‘activation’’ sticker with a number to call. This was a ruse to sell you the insurance. People thought they
were talking to their bank to set up a card, but it was actually CPP.
They were then told they needed Ј100,000 fraud protection cover; yet banks must cover fraud anyway, unless they can prove the customer was grossly negligent. In a nutshell, these major elements of the policy were virtually worthless.
It doesn’t stop there. Some people were told they couldn’t cancel, the risk of ID fraud was overstated, it hiked prices without telling people, and it auto-renewed policies with no opportunity to cancel.
Why did so many people fall for this?
Imagine that before you started reading this guide, someone offered to sell you "Martin Lewis punches you in the face insurance" against the event that because you read it, he'd find you and smack you.
Of course it's ludicrous. But, wouldn't you think "there must be a reason they're selling this insurance"? "He must've done it before. They wouldn't be selling it unless there was a tangible, manifest risk."
Now you've thought that, it starts to create a doubt. "Maybe you should get it, after all it's not that expensive, and peace of mind against being lamped on the nose is important."
Sound ludicrous? Well now turn it to a financial example, where people know less about the facts. Building fear, employing PR people to pump up ID fraud worries, helps sell policies. Millions signed up to CPP to protect against a conjured risk that sounded believable.
Are CPP and PPI the same thing?
CPP schemes promised to insure you from card or ID fraud. PPI covers loan, credit card and mortgage repayments if you can't repay due to accident, sickness or unemployment. The two are separate. You could have been mis-sold and reclaim both.