UK-based CPP Group is reportedly planning to send claim reminders to credit protection mis-selling victims, as it aims to complete the compensation payment ahead of the deadline 30 August 2014.
Millions of people, who are eligible to get compensation for mis-sold card or identity protection policies, will receive reminder letters, informing them that to make a claim next month.
It was found that the company sold the Card Protection Plan (CPP) without assessing the customers’ cover risk requirements, reported The Guardian.
The customers were misguided that by £80 a year insurance premium, they can get replacement of their lost credit or debit card; however, the customers in majority of the cases do not require such policies as they were already protected by their bank or card issuer.
CPP operates through 13 banks and card issuers and has allocated approximately £70m to recompense the customers.
According to an estimate, over £16m has already been reimbursed so far.
The amount of compensation varies between £100 and £300 each claimant, which depends the period for which the customers hold the policy. Eligible customers can apply for compensation until 30 August.
"We are committed to achieving a fair and reasonable outcome for customers that may have been affected by historical issues," said Helen Spivey of CPP Group told The Guardian.