Help & Guidance to reclaiming CCP

[di30]

Help & Guidance for you to reclaim CPP.

http://www.which.co.uk/consumer-rights/action/letter-to-claim-redress-on-a-mis-sold-credit-card-insurance-policy

Letter to reclaim mis sold CCP.

CPP Ltd mis-sold thousands of insurance policies on credit and debit cards to customers who were already covered by their bank or credit card company.
Customers are now entitled to claim compensation and claim forms will be issued by CPP in February 2014.
If you believe you should have received a claim form and haven't, use the freephone number 08000 83 43 93 to contact CPP.
For premiums paid pre-2005, you need to complain directly to your credit card provider. Use our template letter below......

[Date]

[Your name and Address]

[Name and address of CPP provider]

FAO: Complaints Manager

Dear Sir/Madam,

Re: [CPP policy number, card sort code and account number]

I purchased the above CPP policy from you on [date] to protect my card referenced above.

Under the Financial Conduct Authority’s central requirement that ‘all companies should treat customers fairly’ I believe I was mis-sold this policy.
The Misrepresentation Act 1967 allows for financial loss to be recovered in cases of misrepresentation.

As I could have received the same cover against fraud without paying for a policy, I believe the policy was misrepresented to me and I therefore wish to make a complaint.

I am applying/have applied to the CPP redress scheme for all premiums paid after January 2005.

If my complaint is upheld, I require a refund of all premiums paid to the policy prior to 2005.

I also wish to claim compensation in view of the fact that I have been deprived of the use of this money.
Please now investigate my complaint within the eight weeks allowed to you.

Yours faithfully,

[SXGuy]

Re: Help & Guidance to reclaiming CCP

Im unsure which credit cards it applied to at the time pre 2005, all we have is the CPP letter informing us of the protection.

I fear its too long a period to SAR the ones we think it may have been. Would CPP know/give the information for which credit cards the policy were covering, do you think?

[Bill-K]

Re: Help & Guidance to reclaiming CCP

I believe that it will be necessary for all CPP claimants to contact their lender(s), as the refunds directly from CPP Ltd. do not include apportioned account interest.

At the CPP policyholders meeting, it was voted that the plan - for CPP Ltd. to identify accounts and refund the CPP premiums directly - would go ahead. There was no mention in the plan of repaying the portion of account interest that was attributable to the CPP, but I believe this is reclaimable in addition to the CPP premiums paid. I did not have CPP myself, but I am assisting with a couple of CPP claims, and we are looking into this. As I understand it, CPP was charged annually at an approx. average of £30 per year, and these premiums were passed by the lender directly to CPP Ltd. (or another CPP provider). This is the money which CPP Ltd. is now refunding.

However, the lender charged account interest each month, and a portion of this was directly attributable to the CPP. This is not being refunded by CPP Ltd., as it was not money that was passed to them, because it was interest charged by the lender, and kept by them. I believe this interest is reclaimable in the same way that apportioned account interest is reclaimable on PPI reclaims, and I am suggesting that anyone who receives a CPP refund contacts the lender to seek a refund of CPP-related account interest directly from them. Where it is not possible to identify which account(s) had CPP charged, then I suggest that claimants contact CPP Ltd. for a full explanation of how the refund was calculated - to include lender(s), account number(s), amounts and dates. The FCA Redress Handbook in Appendix 1 of Policy Statement PS10/12 states:-

" DISP APP 3.9.4 The firm should make any offer of redress to the complainant in a fair and balanced way. In particular, the firm should explain clearly to the complainant the basis for the redress offered including how any compensation is calculated and, where relevant, the rescheduling of the loan, and the consequences of accepting the offer of redress."

Although strictly speaking, PS10/12 is for PPI Redress - I believe the principles are the same for mis-sold CPP, and the same rules should apply. With the figures and dates from the CPP redress calculations, it should then be possible to check that the CPP refund is correct, and also to calculate how much account interest should be repaid by the lender(s). I now have a spreadsheet/calculator program for doing this, and will ask if it can be posted here in AAD as a Sticky.

As a rough guide, on a credit card with an APR of 29.9% - if CPP was taken out on 01/01/05 at £30 per year, with the final premium paid on 01/01/14 - then by today's date (24/05/14):-
£300.00 of CPP premiums should be refunded by CPP Ltd. (or the CPP provider);
£1,352.68 in apportioned account interest should be refunded by the lender(s);
£300.01 in compensatory interest at the Statutory rate of 8% Simple should also be paid by the lender(s).

This adds a further £1,652.69 to the original CPP refund !!! I believe this aspect has been deliberately overlooked, as I contacted the FCA and CPP Ltd. prior to the policyholders meeting to point this out - but was ignored. Even MSE were suggesting that people vote for implementing the plan, and I'm not sure if any of the forums are aware of this aspect of CPP redress - so I think it should be given maximum publicity to stop the lenders getting away with yet another of their scams.

Here is the spreadsheet I hope to post here as a Sticky. I have used it to calculate the example given above. If anyone wants to use it, then simply over-write the data in it, and delete any unused lines (rows):-

[Bill-K]

Re: Help & Guidance to reclaiming CCP

I needed to double-check my calculations, as the figures above were a rough calculation. I recently created a spreadsheet for reclaiming PPI which was based as closely as possible on the actual calculation method prescribed by the FCA in the PPI Redress handbook (FCA Policy Statement PS10/12, Appendix 2, Example 6.) I treated CPP as if it were a PPI product, and the only departure from the FCA method was to adjust the 'Notional Balance' calculation, so that it assumed that the only debit from the account was the CPP. The 'Notional Balance' is a re-constructed hypothetical balance, and is used purely to calculate any 8% simple interest due. Using this method, I get the following:-

as at today's date (25/05/14),
£300.00 of CPP premiums should be refunded by CPP Ltd. (or the CPP provider);
£1,539.35 in apportioned account interest should be refunded by the lender(s);
£419.15 in compensatory interest at the Statutory rate of 8% Simple should also be paid by the lender(s).

This means that £1,958.50 interest is reclaimable in addition to the original £300 paid as CPP premiums. I daresay that this would be argued against, but the maths supports the claim IMHO. This interest is over six times the value of the £300.00 CPP premiums paid and refunded.

And - once again - they are getting away with this.

CPP Using PS10-12 Ex.6 V1.2 Example.xls

[Bill-K]

Re: Help & Guidance to reclaiming CCP

Hi to all here,

I'm not sure if this will interest you, but I have started a CPP thread here, which is still a work-in-progress:-

http://forums.all-about-debt.co.uk/s...Being-Scammed-!!!

I'm just posting the link on any CPP threads I see in AAD, as I think it is worth ALL CPP claimants checking out.

This is tracking an actual CPP claim I am helping with (family member) - so it kinda adds some 'reality' to my previous couple of posts, and updates them.

Apologies for the hi-jack.

Bill.