More than seven million people (including me) have been sucked into their bank’s or card provider’s sales pitch that they “needed” CPP insurance – card and ID protection insurance.

I’m afraid to say it was another mis-selling scandal, so here’s what you need to know...

What has happened?

CPP’s card protection product was sold as Card Guard by HSBC, Card Safe by M&S Money,

Barclaycard Card Protection, Barclays Cardholder Protection, NatWest Card Protection, Egg Emergency Cover and Card Protection Plus, and Commercial Card Protection by CPP and a number of its business partners. For an extensive list of the banks and card providers who sold CPP insurance, go to www.youandyourrights.co.uk.

Customers were told they should take out card protection, which provided cover for fraud of up to £100,000. 

However, this wasn’t necessary because banks have to cover fraud as a matter of course.

It means that if your bank account is defrauded, your bank will reimburse the money – unless they can prove the customer was grossly negligent.

It has also been found that the banks and card providers have greatly exaggerated the risks of ID fraud in their quest to sell insurance.

How do I claim?

The Financial Conduct Authority (FCA) has confirmed that the major banks and credit card providers, together with CPP, have agreed to set up a central redress system to compensate customers. Compensation will be available for all customers who took out the insurance after 2005.

CPP started writing to policyholders last Thursday with more information about the compensation scheme and what to do next.

You won’t get your money back until next year. However, the good news is you won’t need to prove that the insurance was mis-sold to you as the mere act of claiming guarantees your money back.

How much can I get back?

All the money you paid in premiums, less any money paid out by the policy will be refunded to you. You will also get interest, calculated at eight per cent per year. This is thought to be worth up to £300 per case.

What about CPP sold before 2005?

You can still complain to the firm which sold you the policy. If they reject your claim you can take your case to the free Financial Ombudsman Service.

However, for the ombudsman to adjudicate, it must be within three years of you being reasonably aware that the insurance was mis-sold to you. Given that the news has only recently come out, you should fit this criteria.

For more information, go to Dean’s FREE website: www.youandyourrights.co.uk

How to claim if you've been mis-sold your gas or electricity

If you have ever switched gas or electricity supplier, you may be entitled to compensation if it was mis-sold to you.

The Energy Ombudsman will look at complaints within nine months of when you first became aware of the problem.

If any of the following applies, it is likely the ombudsman will determine that you are entitled to compensation:

1 If the salesperson asked you to sign something which you did not realise turned out to be ­paperwork confirming your authority to switch supplier.

2 If you switched to Scottish & Southern Energy (including Scottish Hydro, Southern Electric, Swalec and Atlantic) after a doorstep sale between October 2009 and September 2012.

3 If the salesperson told you that you would pay less if you switched to a new supplier but you actually ended up paying more.

4 If you were sold a fixed or capped tariff but you did not actually ­understand what you were buying into as it was not fully explained by the salesperson.

5 If you were told that your energy prices would not rise on a tracker tariff.

6 If you were not told that you would have to pay a cancellation fee if you leave the contract before its end date.

7 If the salesperson did not give you an estimate of what the cost of your new energy tariff would be and if they did not show you how the costs compared to other providers

To claim, firstly complain directly to your supplier by writing to them and explaining in as much detail as possible why you believe you were mis-sold their product.

If they either reject your claim or fail to respond within eight weeks, you can then complain to the Energy Ombudsman, which is a free service.

- For more information, go to my FREE legal and consumer website, youandyourrights.co.uk