Majority of Affect UK Consumers Yet to Claim Identity Protection Compensation
Monday, 8 June 2015
Only 1 in 3 consumers affected by the credit card identity protection mis-selling scandal have so far submitted a claim for compensation from insurance provider CPP.
Of the total 7 million UK consumers who are eligible for compensation, only 2.4 million have so far come forward and filed claims, leaving approximately £850 million in unclaimed reimbursements.
According to figures released by the Financial Conduct Authority (FCA), compensation from CPP will reach around £1.3 billion, however claims have currently only reached £451 million.
Consumers were first allowed to submit their claims in February last year, although claims have only trickled in over the past 12 month.
CPP was fined £10.5 million last year for their role in mis-selling insurance policies to consumers.
The insurance scheme, which affected almost all major banks in the UK included the likes of HSBC, Barclays and the Royal Bank of Scotland, 3 banks which, along with a further 10 banks, voluntarily contributed to the compensation fund to reimburse consumers who were affected.
Consumers who were affected by the mis-selling are eligible to receive a full reimbursement for the cost of the insurance policies they were signed up for with interest of 8%, totalling on average £190 per customer.