The Financial Conduct Authority (FCA) has inked an agreement with Affinion International (Affinion) and 11 high street banks and credit card issuers, which will allow customers to claim compensation for being sold unnecessary insurance policies.
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The policies were under the names such as Card Protection, Sentinel, Sentinel Gold, Sentinel Protection, Sentinel Excel and Safe and Secure Plus.
The policies were run by Affinion and sold by the banks and credit card firms.
The banks and credit card issuers taking involved in the scheme are AIB Group, Barclays Bank, Capital One, Clydesdale Bank, HSBC Bank, Lloyds Bank, Northern Bank, Santander, Tesco Personal Finance, the Co-operative Bank, and Royal Bank of Scotland.
One element of the insurance covered the loss or theft of customers’ bank cards.
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By GlobalDataAccording to the watchdog: "This was unnecessary because the customer’s card issuer was typically responsible for any transactions after the cards were reported as being lost or stolen and, in the period before reporting the matter, customers were only liable for unauthorised transactions in limited circumstances.
"The bank or card issuer usually covered customers for anything over the first £50 if transactions took place before the card was reported missing."
Impacted customers will be sent a letter in April or May, and will be asked to vote in favour of the compensation scheme.
