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Gocompare.com comments on the compensation package announced by the FCA for consumers who were mis-sold card security products

27 January 2015

The FCA has today announced an agreement which will pave the way for compensation packages for credit card customers who felt they were mis-sold card security products.

11 high street banks and credit card suppliers have entered into a voluntary agreement to pay compensation on six card security products.

Matt Sanders, Gocompare.com’s money spokesperson, said: “Agreements like this are another step to try and bolster trust in the financial sector after it has been hit by many mis-selling scandals in recent years, such as Payment Protection Insurance (PPI) and the up-selling of packaged bank accounts.

“It is great to see so many high street banks enter into this voluntary agreement to try and redress some of the historic mis-selling in the sector. Although it is likely that this latest compensation scheme won’t be as big as that required for PPI mis-selling, it is good to know that consumers will be able to get some form of reimbursement for buying products that they did not need.”

Matt added: “Customers who are planning on applying for this compensation should bear in mind that they don’t need to go through a third party to claim. When they receive a letter about the compensation they should apply for it themselves. No doubt there will be claims management agencies, such as those which have sprung up to take advantage of PPI compensation, ready and willing to help consumers get redress, but this will come at a cost to the consumer. If you do it yourself you’ll get all of your compensation.”