Deadline looms for CPP cover claims
People who were mis-sold a type of cover for bank and credit cards face a last-minute dash to return their claim forms now or else they will miss out on compensation.
Around seven million people have been eligible for payouts after being mis-sold Card Protection Plan Limited (CPP) card or identity protection insurance products, but forms sent out to those who are due to receive redress must have been completed and received by the redress scheme no later than this Saturday.
The redress scheme was approved by CPP customers in a vote last year and it became effective on January 31 this year, after being sanctioned by the High Court. The average sum people have received so far in redress is £188.
But consumer campaigners have raised concerns that millions of those who are eligible for compensation will miss out.
Consumer help website MoneySavingExpert has found that many victims have mistaken claim forms they have received as part of the redress scheme for payment protection insurance (PPI) junk mail, leading them to throw them in the bin.
By June, only around one quarter of those who are eligible had submitted their claims, leaving around five million people yet to do so.
MoneySavingExpert has written to regulator the Financial Conduct Authority (FCA), arguing that the deadline should be extended.
The FCA has said the August 30 cut-off date was a feature of the scheme that was approved by the High Court and CPP customers.
The regulator said the deadline featured prominently in letters sent out to consumers and it also issued a reminder in July encouraging people not to delay sending their forms back.
A handful of people may still be able to be considered for redress if they miss this Saturday's deadline, but the circumstances would have to be highly exceptional, such as some extreme issue which physically prevented that person from returning their form.
The mis-selling scandal ran from 2005 to 2011, although only a proportion of the policies sold were arranged directly through CPP.
Many customers were sent new bank cards which they had to activate by going through a CPP call centre, where they were offered insurance.
They were persuaded to spend £30 a year to insure their card, or around £80 for an identity protection policy - despite many already having cover provided by their bank or credit card firm.
MoneySavingExpert has said it has not heard of anyone who was sent a reclaim letter who has been refused their money back.
Anyone who believes they have been affected can get help with reclaiming by visiting www.moneysavingexpert.com/CPPreclaim or by visiting the scheme's website at www.cppredressscheme.co.uk.