The Sentinel redress scheme: Five things you need to know about card security insurance

Customers who were mis-sold the insurance are to be refunded

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What's this about?

About two million people have been flogged worthless card security insurance from Sentinel since 2005. Last month the High Court approved a redress scheme to refund customers who were mis-sold.

The redress scheme will be open to anyone who bought a card security product with one of the following Affinion International product names: Card Protection, Sentinel, Sentinel Gold, Sentinel Protection, Sentinel Excel, or Safe and Secure Plus.

A separate company, AI Scheme Ltd, has been set up to deliver the redress scheme.

What's the problem with this product?

Affinion or Sentinel card security was sold both directly and alongside 11 banks and card issuers, including Barclays, HSBC, Lloyds, RBS and Santander. The insurance offered "card security" which covered fraudulent use if a card was lost or stolen. This was unnecessary as the card issuer is responsible for fraudulent transactions in most circumstances.

How much cash might I get?

The premium was about £25 a year. Compensation will depend on the length of time you had the product. You'll get the money you paid in premiums plus interest at 8 per cent a year, minus any money paid out by the policy.

What do I need to do to get the money?

Look out for a letter from AI Scheme Ltd. These are being sent to eligible customers from now until mid-September.

The letter will ask whether you want to be considered for redress and will include a claim form that has to be completed, signed and returned before 18 March 2016.

The quicker you respond, the sooner you'll get your money. The first payments are expected in late September 2015.

I have Sentinel card protection but didn't receive a letter. What should I do?

If you think you have one of the products included in the scheme, and have not been contacted by the end of September 2015, contact the AI Scheme helpline on 0800 678 1930 (outside the UK dial +44 208 475 3103).

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