Most UK Consumers Have Not Claimed Credit Card Compensation

April 16, 2015, Written By Bill Hardekopf
Credit Card Covered With UK Flag.

Only one in three consumers in the UK have filed for compensation for mis-sold identity protection from insurance provider CPP. Of the seven million consumers who are eligible for compensation, just 2.4 million have filed for it. This equates to roughly £850 million in missed opportunities.

According to figures from the Financial Conduct Authority, compensation from CPP was set to reach £1.3 billion, but so far, it has only reached £451 million. Claims for reimbursement were approved to begin last February, but they have only trickled in over the last year.

CPP was fined £10.5 million for mis-selling insurance policies to consumers last year. The scheme involved nearly every major bank in the UK at the time. 13 banks voluntarily contributed to the compensation funds, including HSBC, Barclays and the Royal Bank of Scotland.

Consumers are eligible to receive reimbursement for the cost of their insurance policies, plus annual interest of 8%. This comes out to an average of £190 per consumer. Only one submitted claim has been rejected thus far from the millions that have been sent out.

The information contained within this article was accurate as of April 16, 2015. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.