CPP — a provider of credit card insurance and identity theft protection — has acknowledge that it is under investigation for “alleged failings in sales calls with customers,” in the United Kingdom according to a report in The Press.
Stateside, a New York City banking law attorney or business litigation firm should always assist businesses in designing sales or marketing programs to help ensure they do not run afoul of the many laws governing such activities. On the customer side, a consumer law attorney in New York should be consulted when a consumer feels he or she has been victimized by credit card insurance, predatory interest rates and fees and other questionable business tactics.As this case illustrates, even the allegation of impropriety can be enough to negatively impact business reputation. Barclaycard has announced it has stopped selling CPP’s identity protection product until the investigation by the Financial Services Authority is complete. The company had attempted to sell customers on the service when they called to activate their cards.
Many of these services have dubious value and consumers should be alert for high fees — often more than 1 percent a month. Most credit card agreements already limit a customer’s liability in the event of a stolen credit card or identity theft.
In the current investigation, the FSA has raised concerns about the company exaggerating the need for identity theft protection and confusion over what was covered by the insurance.