Tweet
Card Protection Policies (CPP) - We're STILL Being Scammed !!!
I have seen several other CPP reclaim threads here, but am starting my own, as it may be of interest to those who have received refunds from CPP Ltd. - who were ordered by the FCA to repay the premiums they received. Other CPP firms (eg., Sentinel, etc) may also be involved. CPP was recognised as a universal scam, because the FCA declared that it was totally unnecessary - but the 'Scheme of Arrangement' set up by the FCA & CPP Ltd (via Ernst & Young LLP) may have effectively misled the victims of this scam into believing that the "That's 'andy, 'arry !" arrival of these refunds - without claimants having to fight tooth & nail for them - settled the matter nicely. But it did not - I beg to report.
The general nature of CPP involved an annual premium of around £30 being charged to one's credit card account, to cover (ostensibly) loss/fraud/ID theft etc. - and this was often 'sneaked in' without consent or knowledge of the claimant. So for example, once a year, this 'CPP' item appeared on the statement, and £30 was charged - and over 10 years, this would have amounted to £300 in CPP premiums that were charged to the account, and then these premiums were sent to CPP Ltd., who 'administered' the insurance scam. It is this £300 that CPP is now having to refund - and bless their cotton sox - they seem to have made an effort, in that they have also been adding 8% simple interest to these amounts. Premiums paid before 14/01/05 are also outside of this scheme, because the FSA 'regulation' didn't cover CPP before this.
The nature of the continuing scam is that the FCA failed to address the issue of the credit card account interest that was charged on a monthly basis to the increasing portion of account balance that was made up of mis-sold CPP premiums over the years. This aspect was completely ignored by them in the 'Scheme of Arrangement,' and has yet to be addressed I believe. So what has happened is that poor old CPP has had to refund the premiums, but the credit card providers have kept the interest they charged on them. The convention has been generally accepted that lenders have to refund the apportioned account interest charged on mis-sold PPI and unlawfully-charged penalties - and I believe the same principle must apply to CPP. If you're still following the story so far, then you may be thinking that this 'extra interest' is not worth the effort of reclaiming - but it is this account interest where the big scam was - and is - being operated.
Despite me contacting them about the total omission of this account interest, the Scheme went ahead, and I was ignored. The FOS however did confirm that any claims for this account interest were not covered by the normal PPI 'rules' (as in PS10/12) - and also that any claims would be dealt with by the FOS on their own merits, with the necessary rule that such claims should be made to the lenders in the first instance. So - unless someone else out there has done so already - the FOS are apparently suggesting that a 'precedent' needs to be established with a 'test case.' As it happens, I have 2 family members who have received their premium refunds from CPP, and I am assisting with those - my 'test cases' !!!
What I have got so far is that CPP were kind enough to send details of all premiums they received, when I asked for further details - so this saved all the hassle of sending DSAR's. This included the hitherto unrefunded premiums paid prior to 14/01/05. Whilst there was a deadline for CPP claims, I don't think this applies to the request for this additional info - so I suggest that claimants send one ASAP. We were then able to claim directly from the card provider, as per the FOS suggestion. This claim was for:-
1. all the premiums detailed in CPP's response (ie., including those paid before 14/01/05), plus;
2. the apportioned account interest charged on these premiums over the life of the account, plus;
3. 8% simple interest on all of the above, less;
4. what CPP had already refunded.
We have received a response from one of these claims, and I'll summarise it here:-
The original offer from CPP was for £120.
We wrote to the lender to request repayment of earlier premiums, plus account interest, plus 8% simple interest.
They offered a further £95.
We then sent them a well-snotty letter with our calculation showing that they owed a further £350 - and not just £95.
They acknowledged, and are now taking their traditional 8 weeks to respond.
This was a pretty small amount to start with - but if you can imagine someone paying £30 p.a. since 1975, we have £1200 in premiums - most of which is not being refunded. The original £120 offered in the above example should (in my estimation) be around 4 times that amount. With £1200 in premiums going back to 1975, this should easily have amounted to £6,000 at the very least. That's the continuing scam, I reckon.
The general nature of CPP involved an annual premium of around £30 being charged to one's credit card account, to cover (ostensibly) loss/fraud/ID theft etc. - and this was often 'sneaked in' without consent or knowledge of the claimant. So for example, once a year, this 'CPP' item appeared on the statement, and £30 was charged - and over 10 years, this would have amounted to £300 in CPP premiums that were charged to the account, and then these premiums were sent to CPP Ltd., who 'administered' the insurance scam. It is this £300 that CPP is now having to refund - and bless their cotton sox - they seem to have made an effort, in that they have also been adding 8% simple interest to these amounts. Premiums paid before 14/01/05 are also outside of this scheme, because the FSA 'regulation' didn't cover CPP before this.
The nature of the continuing scam is that the FCA failed to address the issue of the credit card account interest that was charged on a monthly basis to the increasing portion of account balance that was made up of mis-sold CPP premiums over the years. This aspect was completely ignored by them in the 'Scheme of Arrangement,' and has yet to be addressed I believe. So what has happened is that poor old CPP has had to refund the premiums, but the credit card providers have kept the interest they charged on them. The convention has been generally accepted that lenders have to refund the apportioned account interest charged on mis-sold PPI and unlawfully-charged penalties - and I believe the same principle must apply to CPP. If you're still following the story so far, then you may be thinking that this 'extra interest' is not worth the effort of reclaiming - but it is this account interest where the big scam was - and is - being operated.
Despite me contacting them about the total omission of this account interest, the Scheme went ahead, and I was ignored. The FOS however did confirm that any claims for this account interest were not covered by the normal PPI 'rules' (as in PS10/12) - and also that any claims would be dealt with by the FOS on their own merits, with the necessary rule that such claims should be made to the lenders in the first instance. So - unless someone else out there has done so already - the FOS are apparently suggesting that a 'precedent' needs to be established with a 'test case.' As it happens, I have 2 family members who have received their premium refunds from CPP, and I am assisting with those - my 'test cases' !!!
What I have got so far is that CPP were kind enough to send details of all premiums they received, when I asked for further details - so this saved all the hassle of sending DSAR's. This included the hitherto unrefunded premiums paid prior to 14/01/05. Whilst there was a deadline for CPP claims, I don't think this applies to the request for this additional info - so I suggest that claimants send one ASAP. We were then able to claim directly from the card provider, as per the FOS suggestion. This claim was for:-
1. all the premiums detailed in CPP's response (ie., including those paid before 14/01/05), plus;
2. the apportioned account interest charged on these premiums over the life of the account, plus;
3. 8% simple interest on all of the above, less;
4. what CPP had already refunded.
We have received a response from one of these claims, and I'll summarise it here:-
The original offer from CPP was for £120.
We wrote to the lender to request repayment of earlier premiums, plus account interest, plus 8% simple interest.
They offered a further £95.
We then sent them a well-snotty letter with our calculation showing that they owed a further £350 - and not just £95.
They acknowledged, and are now taking their traditional 8 weeks to respond.
This was a pretty small amount to start with - but if you can imagine someone paying £30 p.a. since 1975, we have £1200 in premiums - most of which is not being refunded. The original £120 offered in the above example should (in my estimation) be around 4 times that amount. With £1200 in premiums going back to 1975, this should easily have amounted to £6,000 at the very least. That's the continuing scam, I reckon.
!!!)
Comment