About half of all people who were mis-sold payment protection insurance were also sold CPP insurance, according to research by solicitors McHale Muldoon.
In Ireland there were more than 340,000 payment protection insurance policies sold to customers, a large number of which were sold to unsuitable clients.
CPP sold an identity protection insurance product to customers that would cover consumers if their credit cards were cloned. However, most card issuers such as Visa and Mastercard already provided this cover.
In the UK the Financial Conduct Authority (FCA) has ordered CPP to pay out a compensation package worth £1.3bn (€1.5bn) — an average payment of £200 (€244) per customer who was mis-sold CPP identity insurance.
In Ireland, both Ulster Bank and Bank of Ireland sold the CPP products in question to Irish customers.
A solicitor with McHale Muldoon, Kieran Friel, said that the only reason that Irish consumers are not being compensated is a failing by the Central Bank.
“The company is more or less being liquidated, with the money going to the redress scheme. I can’t see any reason why Irish consumers are not being included in the redress. The Central Bank should be doing it. The FCA have already done all the work on this. It is along the lines of the inaction of interest rate swaps and endowments — it screams of a protection racket,” he said.
A spokesperson for the Central Bank confirmed that CPP insurance was not included in the ongoing review of PPI mis-selling in Ireland. “The sale of CPP is not included in the PPI
review. We wouldn’t comment further at this point,” the spokesperson said.
Even though there is evidence of the wide-scale sale of CPP insurance in Ireland there is little legal appetite to take action as the individual costs are quite small, ruling out the possibility of legal firms taking actions on behalf of clients.
“I get an awful lot of phone calls from people saying that they have this particular product, but we can’t go after it because the amounts are quite small. We just tell people to cancel it off their cards,” said Mr Friel.
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