CHESTERFIELD MP Toby Perkins visited the Card Protection Plan company’s Chesterfield offices this month to discuss the recent threat to the firm and the potential repercussions for employees.
The credit card insurance company, which has an office on West Bars, is undergoing a review of sales procedures which could cost £15m and threaten jobs.
Mr Perkins visited CPP on Friday, March 2, and wrote to the Financial Services Authority after it struck a deal to bring in a costly review of the company, which has an HQ in York, over the mis-selling of insurance.
The review deal could cost £15m to implement with compensation and any loss of business so the company has been in talks with banks about loans to prevent administration and redundancies.
Mike Kneafsey, CPP Managing Director, said: “It has been a challenging few weeks for CPP and all our people.
“Toby has been hugely supportive and it was great that he took the time to meet our team and provide encouragement to those he met during his visit to our office.
“We are delighted to have now reached an agreement in principle with the FSA in relation to the scope of actions necessary to address certain failings in CPP’s sales processes.
“While we are still in negotiations with various stakeholders including our financing banks, the resolution of these issues allows us to renew our focus on evolving towards a more customer-centric business.”
As part of the review, CPP will have to contact customers it approached directly and highlight that they have the right not to renew products and it will have to explain any advantages and disadvantages.
Mr Perkins said; “CPP is one of the biggest employers in the Chesterfield area and I am reassured by the progress that has been made in discussions with the FSA and with CPP’s financing banks.
“CPP has stressed their desire to redress customers who have been mis-sold to and that this can be achieved in a way which does not threaten the stability of the company.
“CPP is hoping to increase operations in the Chesterfield office which means more job prospects in the region.”