‘Mis-selling’ not limited to PPIs

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.

© Irish Examiner Ltd. All rights reserved

Email Updates

Receive our lunchtime briefing straight to your inbox

More in this Section

Irish firms ‘have no plan’ for Brexit as UK return ruled out

Small Business Column Q&A: Dave Smyth from Cogs and Marvel

Dundalk firm Nova Leah is leading the field in safeguarding medical devices

Hans Rosling could bring subjects to life and shine light on complex issues


Breaking Stories

Why buying a second-hand car could actually be a security risk

Unilever shares plunge after Kraft Heinz merger bid scrapped

Topaz and McDonald's to create 230 new jobs through opening of two new motorway service areas

Lifestyle

Julia Jacklin, the Australian queen of folk, is coming to Ireland

Is it wrong parents must baptise a child to get them into a school?

One of Ireland’s most sought after music photographers, Christian Tierney, is going green

Vanquish the varroa mite with vapour

More From The Irish Examiner