Credit card insurer CPP, which has been under the shadow of a regulatory probe for the past year, suffered a new blow today when Barclaycard decided against renewing its contract with the company.
Barclaycard had already suspended some sales of CPP products last year, and will now end all other sales within the next three to six months, CPP said.
The York-based firm, which helps victims of identity theft, has been investigated by Britain’s Financial Services Authority (FSA) for much of the last year over its sales techniques.
The company said that there was still no end in sight to the FSA investigation, with the duration and outcome of the probe still uncertain.
CPP added that the FSA probe continued to hurt its business, and that the loss of the Barclaycard contract would have an “adverse impact” on its revenue and profits from 2012 onwards.
“Whilst disappointed at Barclaycard’s decision, the board remains positive about the Group’s prospects in the UK as the new business pipeline continues to build, the consumer appeal of the group’s products remains strong, and relationships with business partners remain good,” CPP said in a statement.