CPP suffers further shares pain

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Under-fire credit card insurance firm CPP yesterday suffered further shares pain after City regulators announced a £1.3 billion compensation payout for consumers.

Shares had fallen by more than a quarter on Thursday after City regulators announced the package for victims but fell a further 20 per cent yesterday.

Hamish Ogston, who owns a majority stake in the York-based firm, gave a combative response to the action by the Financial Conduct Authority (FCA), describing the sum as “bollocks” and a “ridiculous figure”.

Shares have now plunged from 20.3p since before the announcement to 11.75p at yesterday’s close – wiping more than £13 million from its stock market value.

The losses mark the latest slump in the company’s stock since its heyday in 2010 when its market float netted Ogston a reputed £120m.

The value has since plummeted as the mis-selling scandal emerged.

Seven million victims are in line for compensation after the FCA announced the £1.3bn redress package over the affair, involving CPP together with 13 high street banks and credit card companies.

The companies have agreed to offer redress for mis-sold credit card and identity theft protection policies. Barclays, HSBC and Royal Bank of Scotland are among those to have signed up to the scheme.

The scandal involved 23 million policies and saw customers given misleading and unclear information about the insurance. CPP has already been fined £10.5m.