FCA hits banks with £1.3bn bill for mis-sold card protection

The Financial Conduct Authority (FCA) has reached an agreement with insurance provider Card Protection Plan (CPP) and 13 high street banks and credit card issuers which will result in a £1.3bn redress scheme for people mis-sold CPP's Card Protection and Identity Protection policies.

The regulator said 7 million people, who between them bought and renewed about 23 million policies, will soon receive a letter from CPP giving more information on the process. The redress bill could be up to £1.3bn with redress per customer depending on the type of policy (or policies) owned and the length of time it was held, it confirmed. The FCA’s primary concern throughout its work on CPP has been to ensure customers get a fair deal. It said banks and credit card issuers have - subject to High Court approval - established a 'Scheme of Arrangement' to facilitate compensation.  As c...