Millions of consumers are now closer to receiving compensation after they were mis-sold insurance that was originally marketed to them as a way to protect against having their bank cards stolen or losing them. The policies that CCP set up were offered to customers at all of the major banks in the UK.
According to the insurance policy, those who took the extra policy would receive extra coverage that would cover all losses from identity fraud or card theft and any other case where criminals were able to access the financial and personal details of a person to get loans. While this sounds good, the FCA stated that consumers were not properly informed about how useful the policies would actually be for them.
The scandal of the card insurance comes right away with the widespread mis-selling of PPI (payment protection insurance) which led the banks to pay out billions of pounds to people that were sold the unnecessary protection. Campaigners are now concerned that there may be even more financial products that were mis-sold to customers in the same vein.
Moneysavingexpert.com staffer Guy Anker stated that many people have already been able to successfully receive compensation for policies they purchased on their bank cards after being persuaded while they were buying packaged bank accounts. These types of accounts are those that usually have a monthly fee attached to them for special extras like breakdown insurance or travel.
Anker explained that a very simple example of someone being mis-sold insurance in a package account might be a person that is paying extra for travel coverage on their account even though they are actually too old to make a claim on the coverage. He added that a large problem is that staff are not telling customers exactly what the coverage is for and in some situations customers are even being signed into a package account even though they state they do not want one.