Eight weeks remaining for card security product holders to claim compensation

18 Jan, 2016

People who bought certain card security products have eight weeks left to make a claim under a compensation scheme set up with the agreement of the Financial Conduct Authority. Anyone who received an AI Scheme Limited compensation claim pack in the post in August or September last year and who wishes to claim compensation must return their completed form before the deadline of 18 March 2016.

The scheme, AI Scheme Limited, was voluntarily set up by Affinion International Limited and 11 card issuers to provide redress to those who bought the products, which included insurance to cover fraudulent use if a card was lost or stolen. This was in certain respects unnecessary because the customer’s bank or card issuer was typically responsible for any transactions after the cards were reported as lost or stolen and, before reporting the matter, customers were only liable for unauthorised transactions in limited circumstances.

Commenting on the approaching closure of the AI Scheme,a spokesman from the regulator (FCA), said:

“The FCA has worked closely with Affinion International Limited, and banks and card providers, to set up this consumer redress scheme. This is a straightforward process.  Those with concerns about these products can make a compensation claim and receive redress by simply completing and returning the short form that was sent out to them last summer. Any such compensation claims must however be made by 18 March 2016 so customers should not delay.

“This simple and transparent compensation scheme  applies whether customers bought the card security product from a bank, card provider, or from Affinion International Limited.

“If you think you bought one of these products and don’t have a form or you’ve mislaid it, you should contact the AI Scheme helpline on 0800 678 1930 to check whether you’re eligible to claim and to request a replacement pack.”

People with the following card security products, who were contacted by AI Scheme Ltd, have eight weeks to submit their compensation claim forms:

  • Card Protection
  • Sentinel
  • Sentinel Gold
  • Sentinel Protection
  • Sentinel Excel
  • Safe and Secure Plus

Compensation claim forms must be received no later than 18 March 2016. Forms received after this date will not be considered so it is important that people who wish to seek compensation do so without delay. The FCA recommends that completed claim forms are posted well before the deadline.

What product holders should do next

Eligible product holders have until 18 March 2016 under the AI Scheme to return their completed compensation claim forms. They must use the original form they were sent by AI Scheme Limited; photocopies will not be accepted. A freepost envelope is provided.

Approximately 173,000 people who voted for the AI Scheme had not returned a completed compensation claim form in the first four months of this compensation scheme, so they are being sent reminder letters.

Current policyholders who are yet to act will need to think carefully about whether they want to retain the card security product as any compensation payment will result in cancellation of their existing policy.

Further information for affected customers and detailed answers to frequently asked questions are available on a website set up by AI Scheme Limited.

Individual compensation payments will depend on the length of time the customer had the card security product. The card security product cost about £25 a year. The average compensation payment per customer is £180.