CPP has agreed to the UK Financial Regulatory Authority’s (FRA) order to pay around £1.3bn to seven million people, who were miss-sold identity theft insurance that protected their credit and debit cards.
In August 2013, the FCA claimed that large numbers of policies were miss-sold and urged banks to reimburse victims of the fraud.
According to CPP, an average of £200 will be paid to customers and payouts are expected to begin in the spring of 2014.
CPP CEO, Brent Escott, said a key priority is to achieve the best outcome for customers affected by the historical issues in the UK business and customer approval for the scheme marks a further step forward in this process.
“Whilst the group will continue to face significant risks and uncertainties in the short to medium term, we continue to work closely with our stakeholders to complete the scheme and provide a stable platform from which the business can look forward,” Escott added.