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Millions in line for compensation after being sold unnecessary credit card cover

Compensation would be for around £25 per year for AIB Group products

Simon Read
Saturday 31 January 2015 01:00 GMT

Around 2 million people could be in line for compensation after being sold credit card cover they didn't need, the Financial Conduct Authority revealed this week.

One of the main features of the products was insurance to cover fraudulent use if a card was lost or stolen. However, this was unnecessary because the card issuers are usually responsible for any transactions after cards are reported lost or stolen.

Compensation would be for around £25 per year for products sold by AIB Group (trading as First Trust Bank in Northern Ireland and Allied Irish Bank in Britain), Barclays, Capital One, Clydesdale, HSBC, Lloyds, Northern Bank (trading as Danske Bank), Santander, Tesco Personal Finance, the Co-operative Bank and Royal Bank of Scotland.

Eligible customers will get a letter from AI Scheme Limited in the next few weeks and will be able to vote on the scheme in April or May.

The City watchdog warned consumers to avoid claims- management companies when seeking compensation."

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