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.
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