Credit card insurer in mis-selling inquiry plans to cut over 100 jobs

Credit card insurer CPP Group, which employs about 1,000 staff in York, said it aims to cut around 10 per cent of its UK workforce after an investigation by the Financial Services Authority.

The company is asking for voluntary redundancies but said it will “look at the next steps” if insufficient staff come forward. A spokeswoman said it hoped to complete the voluntary redundancy programme by the end of March, adding it has no plans to “drip feed” more job losses.

“As part of its efforts to move towards a more customer- focused business structure, and following the agreement in principle with the FSA, CPP has today announced a voluntary redundancy programme in its UK business,” said the firm in a statement.

“CPP is committed to keeping job losses at a minimum and the programme is expected to affect less that 10 per cent of its UK workforce.

“These actions do not impact CPP’s ability to deliver high standards of service for its customers and no customer-facing roles are affected.”

The company declined to say how much the cuts will save. It employs about 1,340 UK staff and the bulk of the redundancies will be in York.

CPP has been investigated by the FSA over its sales tactics for identity and card protection products. The company recently warned the FSA’s demands threatened its viability, but days later said it reached a “positive” agreement with the City watchdog. CPP said implementing the review will cost £10m to £15m.

The company’s shares are suspended on the London Stock Exchange while discussions continue with its clients and lenders.