Vote 'yes' for CPP redress

If you bought a CPP policy, whether direct or via a bank, in 2005 or later, you will soon get a series of letters outlining the plan. One of these letters will ask you to vote for the scheme.

A majority will have to vote in favour of the scheme for it to happen. The High Court will then be asked to approve it.

If it goes ahead, everyone who was mis-sold to, or who renewed a mis-sold card protection or identity protection CPP policy in 2005 or later, will automatically become part of the central redress scheme. Total redress could hit £1.3 billion.

See the CPP Mis-selling Guide for more info on the products, including how to claim if you had a policy but cancelled before 2005, or if you had a similar policy from another firm.

You need to look out for three letters (four if you were mis-sold both products):

Letter one, from 29 August

CPP will write to policyholders from Thursday with more information about the refund scheme. Banks, credit card firms and CPP will also advertise in newspapers to make sure people hear about it.

Letter two, this autumn

Those affected will be asked to vote on whether they want the scheme to go ahead. This is a legal requirement.

Our recommendation is that you vote in favour of the scheme. This is a huge mis-selling scandal and the millions that were mis-sold to deserve redress. You have until 5pm on 31 December 2013 to return your voting form.

Letters three and four, next year

If the scheme is approved, CPP will write to policyholders again. This time, it'll be to ask whether they want to be considered for refunds. This will include a claim form which needs to be returned by 31 July 2014.

Separate letters will be sent out for card protection and identity protection.

The FCA won't judge this on a case-by-case basis, meaning you don't need to provide stacks of paperwork to prove you were mis-sold to. If you complain, you will get your money back. It's that simple.

Because of the voting process, the redress is not expected to be paid out until spring 2014. You'll get the money you paid in premiums, minus any money paid out by the policy. You'll also get interest, calculated at 8% per year.