Regulator is demanding the insurer begin a retrospective review with possible compensation payouts
Credit card insurance firm CPP says thousands of jobs are at risk if the FSA continues to push for a retrospective review of its sales tactics.
The company suspended its share trading on the London Stock Exchange yesterday after declaring that the new demands “are disproportionate and threaten the viability of the business”, according to City AM.
The FSA said yesterday that it is likely the firm will be required to carry out a review of past business and, if appropriate, pay redress.
CPP claims that the FSA’s demands could bankrupt it, meaning zero funds for compensation and the loss of 1,969 jobs.
CPP reportedly has a fortnight to come to an agreement with the FSA on the form that any reappraisal will take.
The insurance firm has previously suspended the sales of its identity insurance product and recently lost a Barclaycard contract.
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