CPP to Pay 33.4 Million Pounds in Penalties After FSA Probe
CPP Group Plc (CPP), a U.K. company that provides protection against credit-card and identity theft, may have to pay as much as 33.4 million pounds ($53 million) following a probe into sales of its two main products.
CPP has agreed to repay customers as much as 14.5 million and a fine of 10.5 million pounds, the Financial Services Authority said in a statement. CPP has estimated that the total amount will be 33.4 million pounds, which includes the fine, redress and the costs associated with the investigation.
“The FSA found widespread misselling of CPP’s two main U.K. products between January 2005 and March 2011,” the authority said. CPP “failed to treat its customers fairly and did not provide clear information” to clients, it said.
CPP Group shares slumped 46 percent to a record low in March after the company suspended sales of insured identity protection in the U.K., as the FSA probe covered “alleged failings in sales calls with customers.”
The company said in a statement today that the penalty will be paid in installments, starting with an initial payment of 2 million pounds within the next 14 days. The FSA said the York, England-based company settled at an early stage and qualified for a 30 percent discount in the fine amount.
To contact the reporter on this story: Jim Brunsden in Brussels at firstname.lastname@example.org
To contact the editor responsible for this story: Anthony Aarons at email@example.com