Insurer agrees to change renewal process
Credit card insurer CPP has said it faces a bill of up to £15m to comply with an FSA review of its identity theft insurance.
CPP said it would end up paying between £10m and £15m for compensating customers, possible loss of business at renewal and the cost of the review.
The insurer has agreed to change its renewal process and contact past customers it approached.
Previously CPP warned that complying with the FSA’s demands could bankrupt it and lead to the loss of nearly 2,000 jobs.
In a statement, CPP said: “CPP has agreed to implement with FSA oversight a number of changes to its renewals process, in order to highlight more clearly to customers that they have the right not to renew the product, and to explain clearly to the customer the advantages and limitations of the relevant product.”
“CPP will now work with the FSA to agree the detail of these proposals.”
CPP’s shares remain suspended while the discussions continue.