Lloyds facing new mis-selling scandal: Bill for worthless card insurance may be milli

[Legal Beagles]

Lloyds facing new mis-selling scandal: Bill for worthless card insurance may be millions | Mail Online.

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Lloyds could be hit with another multi-million-pound compensation bill over fears that it mis-sold worthless insurance to thousands of its credit-card customers.

For years, the state-backed bank sold protection policies that promised to reimburse customers for fraudulent transactions if their cards were lost or stolen.

But the insurance – provided by the US firm Affinion – was worthless as banks are already obliged to compensate customers for fraud.

The case has echoes of the scandal involving a British credit-card insurer called CPP, used by High Street lenders including Royal Bank of Scotland, HSBC, Barclays and Santander.

This week the Financial Conduct Authority announced that 7million of their customers would soon receive forms to claim a share of up to £1.3billion in compensation.

Customers, who typically paid £30 to £80 a year for fraud-protection policies, will receive their money back plus interest.

Lloyds distanced itself from the scandal, saying only its subsidiary Bank of Scotland used CPP.

But it has emerged that the rest of the group, including Halifax and Lloyds TSB, sold similar policies provided by Affinion until May 2012.

Separate policies called IDAware and Privacyguard included promises to protect customers against identity fraud, but these are no longer sold by the bank.

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[di30]

Re: Lloyds facing new mis-selling scandal: Bill for worthless card insurance may be m

Is this a separate issue to that of the actual ppi?

I did make successful reclaims some years back on the ppi.

The credit cards I had were applied with that other cover, but assumed it was all part of the PPI?
Have I mis-read on this? thanks.

[dogtired]

Re: Lloyds facing new mis-selling scandal: Bill for worthless card insurance may be m

Subscribe. Same question as Di with BOS

[enaid]

Re: Lloyds facing new mis-selling scandal: Bill for worthless card insurance may be m

It's separate from PPI it is for protection against fraud on your cards but the bank is supposedly already covering it, so insurance missold.

[dogtired]

Re: Lloyds facing new mis-selling scandal: Bill for worthless card insurance may be m

How would you find out?
Cards now long gone but sure it was added.

[di30]

Re: Lloyds facing new mis-selling scandal: Bill for worthless card insurance may be m

Same Question as DT please?

I do have statements, i shall get the box out later and see if i can find anything too. :tinysmile_twink_t2:

[di30]

Re: Lloyds facing new mis-selling scandal: Bill for worthless card insurance may be m

Okay, this being new, we will soon get the hang of it, but just need to know really as its separate, I assume the payment was included within the monthly payment?

[enaid]

Re: Lloyds facing new mis-selling scandal: Bill for worthless card insurance may be m





If you're one of the 7m mis-sold worthless credit card and identity theft cover by banks, card firms or CPP, you could get a share of £1.3bn.Claim forms to get redress are being sent out, this is a guide to get your money back.

http://www.moneysavingexpert.com/reclaim/CPP-card-protection

More than likely a one off yearly payment

Lloyds distanced itself from the scandal, saying only its subsidiary Bank of Scotland used CPP.

But it has emerged that the rest of the group, including Halifax and Lloyds TSB, sold similar policies provided by Affinion until May 2012.


http://www.dailymail.co.uk/news/arti...-millions.html

[di30]

Re: Lloyds facing new mis-selling scandal: Bill for worthless card insurance may be m

Just had a nose now and it says you will only get compensation as from 14th Jan 2005 because of FCA regulation was as from that date and not before.
This will apply to hubby with one of his cards, but mine were settled way before then....

[enaid]

Re: Lloyds facing new mis-selling scandal: Bill for worthless card insurance may be m

I am on final stage of compensation from CPP for my dad, a form to be filled in and sent off before the end of August.
Just a bit about Jan 14th 2005 I am not sure on this but if your card was renewed after that date and you therefore had to activate a new one it may have been added or sold to you then..

[dogtired]

Re: Lloyds facing new mis-selling scandal: Bill for worthless card insurance may be m

Just had a nose now and it says you will only get compensation as from 14th Jan 2005 because of FCA regulation was as from that date and not before.
This will apply to hubby with one of his cards, but mine were settled way before then....

Long before that

[di30]

Re: Lloyds facing new mis-selling scandal: Bill for worthless card insurance may be m

I was reading the example letter.......think that counts doesnt it? lol.

[di30]

Re: Lloyds facing new mis-selling scandal: Bill for worthless card insurance may be m

Well have been having a nose at some of the statements, did find one of hubby's when he opened a renewal Credit Card with Lloyds in 2007, as he did have one prior to that, but it was a lower packaged account, this one was when we were under the Premier account.

Anyway, there are 2 parts (Boxes) of the Credit Card Conditions, they were both branch crossed in the box for Payment Protection Cover and underneath that was Sentinel Card Protection.

He did successful reclaimed back all his PPi back some time ago.

There is also a write up that states: PPI cover at 79p a month for every £100 of outstanding balance.

Then another part about the Sentinal Card Protection.
(I will not write it all as its all small print) So just a little of it here;

Sentinel Card Protection £20 per year, this cover is suitable for customers who do not hold a Lloyds TSB Select, Gold Service or Premier current account and live in the UK.

.................................................. .................................
Now I came across letter about his new Debit Card (Bank Card) which was then Platinum.

Your Platinum Account includes Sentinel Card Protection and Mobile Phone Insurance cover as part of your account benefits. If you havent already done so, register for your benefits.

So the way I see it as it was within the account, they again applied it to the credit card!
But why pay for it again??

Now mine are older and I do have statements with nil balance all the way from about 2005 when settled to about 2007 when they stopped sending me them, because I didnt want the credit card, but did make successful reclaims on the PPI in previous years.

Mine was ASSET PPI was added, but then it was called something like "Payment Cover", not found the actual details so not sure if I was paying for that as well, as statements only show it as payment cover. However I opened that about year 2000, cleared it about 2005 out of the way.

[dogtired]

Re: Lloyds facing new mis-selling scandal: Bill for worthless card insurance may be m

Definetly had Sentinal at least for one card from BOS because I still have one of those key ring things they sent you.
Sadly think it may be to long ago

[di30]

Re: Lloyds facing new mis-selling scandal: Bill for worthless card insurance may be m

I have not come across any updates of this in the media (since this was posted) or is this yet to come does anyone know?