YORK-based card insurer CPP yesterday said it was determined to achieve the “best outcome” for victims of a mis-selling scandal.
Shares in CPP plummeted last week after City regulators unveiled a compensation package of up to £1.3bn.
The losses mark the latest slump in the company’s stock since its heyday in 2010 when its market float netted entrepreneur Hamish Ogston, who owns a majority stake, a reputed £120m. The value has since plummeted as the mis-selling scandal emerged.
Seven million victims are in line for compensation after the FCA announced the £1.3bn redress package over the affair, involving CPP together with 13 high street banks and credit card companies. The companies have agreed to offer redress for mis-sold credit card and identity theft protection policies. Barclays, HSBC and Royal Bank of Scotland are among those signed up to the scheme.
The scandal involved 23 million policies and saw customers given misleading and unclear information about the insurance. CPP has already been fined £10.5m.
Yesterday a CPP spokesman said: “Our priority is to achieve the best outcome for customers affected by these historic issues and ensure customers receive a fair and high quality end-to-end service.”
The spokesman said that a new financing arrangement, agreed in July, represented a “significant milestone” and had created a more stable platform for CPP.