Credit card insurer’s future in doubt as FSA probe shakes confidence
MPs have urged RBS chief executive Stephen Hester not to withdraw financial support from embattled credit card insurer CPP fearing job losses.
The York-based firm insures against credit card fraud and identity theft, and currently employs 1,341 people in the UK.
Following a recent probe by the FSA into alleged mis-selling, Santander and RBS are considering whether to renew their support when existing arrangements expire in March 2013.
In a letter to RBS chief executive Stephen Hester, local MPs Julian Sturdy and Hugh Bayley wrote: “We would strongly urge all involved parties to place the importance of local jobs at the forefront of any discussions with the business.”
Last week Barclaycard decided not to renew its contract with CPP, having already had to suspend sale of some CPP products last year. HSBC and Tesco Bank also stopped offering CPP products to customers last year.
CPP’s shares have been suspended since Monday 20 February, when it warned that the extent of the FSA review threatened “the viability of the business” and could cost up to £15m in lost business and compensation.