The Central Bank of Ireland (“CBI”) has requested that a voluntary redress scheme be put in place by credit card providers who sold card protection insurance provided by Homecare Insurance Limited, a subsidiary of the British CPP Group.
Following an investigation, the CBI has formed the view that certain elements of the cover provided by card protection insurance was not required by consumers. The CBI has advised that there are approximately 161,000 in-scope policies for this redress scheme and the credit card providers are currently contacting each of the impacted customers to advise of their entitlement to seek redress.
A similar scheme was set up by the financial conduct authority in January 2014. By 5 March 2015, the scheme administrators in the UK paid £451m of compensation to 2.37 million claimants, an average of £190 per claim. This represents a response rate of 33.9% of all potential claims.