FSA issues largest ever retail fine against protection firm

The Financial Services Authority (FSA) has issued its joint largest retail fine of £10.5m to Card Protection Plan Limited (CPP) for mis-selling insurance products.

CPP has also agreed to pay redress and estimates that around £14.5m will need to be paid to affected customers. The firm has estimated that the total costs of the FSA's investigation will be £33.4m which includes the fine, redress and the costs associated with the investigation. The FSA found widespread mis-selling of CPP's two main UK products between January 2005 and March 2011. CPP failed to treat its customers fairly and did not provide clear information to its customers. It sold its Card Protection product by emphasising that customers would benefit from up to £100,000 worth o...