In 2014 in Ireland there was a review of Payment Protection Insurance (PPI) – which resulted in thousands of people getting premium refunds because they were mis-sold the policies.
In 2015 we had another uncovering of further insurance misselling in Ireland – this time is was Card Protection Policies (CPP).
It is estimated that about 160,000 people could have been sold these CPP policies in Ireland – and with the average policy costing €42 a year it could mean total payouts of u pto €40 million. (About €250 per claim)
Thousands of people will have been sent letters in April and May 2015 from Bank of Ireland, Ulster Bank and MBNA offering the chance to claim refunds – DO NOT IGNORE THESE LETTERS.
Card Protection was offered as an optional policy which was supposed to offer financial protection in the event of card loss or fraud. It turns out that most of the cover provided was useless – because in the case of card loss, fraud or theft – the banks or card providers would have covered all or most of the loss anyway.
In the UK a €1.5 billion compensation deal for seven million customers has been agreed by the banks after investigation by the Financial Services Authority.
A company called Card Protection Plan (CPP) sold the card protection policies. . The UK Financial Conduct Authority (FCA) ruled that many of these products were mis-sold and fined CPP £10.5m in November 2012. It was found that there was widespread mis-selling of Card Protection Insurance , with CPP aggressively selling the insurance to customers who made it clear they did not wish to buy. Many of the sales were made when customers received their new cards with a sticker on the letter asking them to telephone a number to activate their card. They were put through to CPP who activated the cards but also took the opportunity to sell them the insurance.
In Ireland these CPP policies were provided by a company called Homecare Insurance Limited, which is a subsidiary of the CPP Group . The Central Band of Ireland found that customers may have been provided with insufficient information when the policies were sold – as the product contained an element of cover for unauthorised use which was not required, as certain events were covered by the card scheme.
So – the Central Bank of Ireland have requested that Homecare Insurance Limited and its partner banks should offer all affected customers the opportunity to submit a claim for compensation. The banks and card issuers involved are writing to all the affected customers – inviting them to make a claim for compensation. All the letters should be sent out by May 15th 2015 . The card providers involved are : Bank of Ireland, Ulster Bank and MBNA.
All customers in Ireland who were sold a CP policy from August 1st 2006 that was provided by Homecare Insurance could be entitled to compensation. The letters will offer customers the choice of making a claim for the amount of policy premium paid since August 1st, 2006. (This date was chosem because it is the date the consumer protection code came into force.)
It is estimated that about 160,000 people could have been sold these CPP policies in Ireland – and with the average policy costing €42 a year it could mean total payouts of upto €40 million. (About €250 per claim)
The forms being sent by the providers ask the customer to provide a reason why they are entitled to a refund of the policy premiums. The main reason that should be entered is that you were sold the protection policy even though your bank / card provider already covered you for losses due to fraud or unauthorized card use.
If you get a letter/claim form from your bank about your card protection policy – you must complete it , sign and return it for you to be considered for any refund. The closing date is the 24th of July 2015. Any claims received after date will not be considered under the redress scheme
Contact Details for CPP Refunds
MBNA : Republic of Ireland: 0719 656 611 (Overseas: +353 719 656 611)
Address: – MBNA CPP ,7th floor , 2 Park Place , Hatch St , Dublin 2
Ulster Bank Telephone: 1800 283 062. or Overseas: +44 2890 538721.
BOI 1890 251 251 or +353 56775 7303