DOZENS of staff at insurance company CPP’s Chesterfield office face an uncertain future after the company announced it is to undergo a costly review over mis-selling.
The credit card insurance group which has a branch at Future Walk, on West Bars, in the town, revealed it has struck an agreement with Financial Services Authority watchdogs on a review of failings in its sales processes.
CPP will now have to contact customers it approached directly to buy its products and highlight that they have the right not to renew products and explain advantages and limitations.
But the agreement could cost up to £15m to implement the review with compensation and a loss of business and CPP, which has an HQ in York, is in talks with reluctant banks about loans to prevent administration and redundancies.
A CPP spokesman said: “CPP estimates the financial exposure of the group resulting from customer compensation, potential loss of renewal business and costs associated with carrying out the review is expected to be in the range of £10m to £15m.”
CPP remains in talks with stakeholders including its banks and business partners and expects the suspension of CPP shares to stay in place until discussions have been concluded.
Chesterfield MP Toby Perkins was pleased a review agreement has been reached but recognises CPP is not out of trouble until talks with the banks have been finalised.
MPs in York are urging banks to continue supporting the CPP Group with loan facilities.
CPP operates call centres selling protection for credit cards, wallets and mobile phones to bank and building society customers and employs 1,969 people globally.