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Bank card insurance holders can claim compensation


People who have been sold unnecessary insurance for their bank cards will be able to claim compensation under new rules from the Financial Conduct Authority (FCA).

The FCA has announced that forms will be sent to people who might have been sold the insurance later this month. Customers affected would have paid out £25 a year to protect themselves in case their cards were lost or stolen. The cover was actually already provided by their banks, so the FCA has decided that people will be able to claim compensation of up to £270 for mis-selling.

The redress scheme covers people who bought the product between January 2005 and August 2013. The insurance was marketed under the following names:
• Card Protection
• Sentinel
• Sentinel Gold
• Sentinel Protection
• Sentinel Excel
• Safe and Secure Plus

The forms sent out need to be completed by 18th March 2016, and people banking with HSBC, Lloyds, Barclays, Royal Bank of Scotland, Santander and Tesco, among others, will be effected.

People who purchased the cover before 2005 are not covered by the redress scheme. They can complain separately to their provider but it is not guaranteed that they will receive any compensation.

The FCA clarified that the redress scheme which is called A1, is the only official means of compensation.

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