Compensation package agreed for consumers sold card security products

The Financial Conduct Authority (FCA) has reached an agreement with Affinion International Limited and 11 high street banks and credit card issuers, following voluntary negotiations.



Compensation package agreed for consumers sold card security products

Published: Today Last Modified : Today



The Financial Conduct Authority (FCA) has reached an agreement with Affinion International Limited (“Affinion”) and 11 high street banks and credit card issuers, following voluntary negotiations, that will pave the way for customers to claim compensation if they have concerns about the way that card security products with the following product names were sold to them:



Card Protection

Sentinel

Sentinel Gold

Sentinel Protection

Sentinel Excel

Safe and Secure Plus



While an agreement has been reached with the FCA on the nature of the proposed compensation scheme (the "Scheme"), it must be voted on by eligible customers (who are the Scheme’s creditors) and formally approved by the High Court before compensation can be paid. A majority of customers who vote will need to do so in favour of the Scheme for this to happen. This means compensation is expected to be paid later this year.



http://ift.tt/1zolWJy



Key information for Affinion customers

• Eligible customers will be contacted by AI Scheme Limited from late January 2015 onwards. The letters will explain in more detail how the Scheme works and what people can do next. A letter in April or May 2015 will include an invitation for those eligible customers to vote for or against the Scheme and details on how to vote.


• If the Scheme is approved by voters, all eligible customers, even those who voted against it, will still be able to submit a claim for compensation. If the Scheme is approved, all customers need to do is complete and return a simple claim form and the rest of the process will be automatic. They do not need to use a claims management company to help them make a claim.
  


• The Scheme will not cover those who have a card security product as a benefit within a packaged bank account.


• The Scheme is open to all customers who bought or renewed the card security products between 14 January 2005 (when the FCA began regulating the sale of general insurance products) and August 2013 from Affinion or a bank or a card issuer that is participating in the Scheme.


• If customers are entitled to compensation under the Scheme they will receive the amount they have paid for their policy since 14 January 2005, less any money paid out by the product and any applicable taxes, plus 8% interest per annum on the amount owed.


• Should a customer make a claim, their product will be cancelled – even if their claim is rejected. Existing customers who value the card security product and find its current features useful should therefore think carefully about whether they want to keep the product before they make a claim.


• Any complaints referred to the Financial Ombudsman Service will be considered in line with the terms of the Scheme.


• More information for customers can be found at www.aischeme.co.uk or by calling 0800 678 1930 (or, from outside the UK, +44 208 475 3103 but calls to this number may incur a charge). The dedicated scheme telephone line will open on 28 January 2015, when people begin to receive their letters.


• The FCA has published further information for consumers at http://ift.tt/1ypVOqS.

Compensation package agreed for consumers sold card security products