CPP future still at risk as banks withdraw backing
TROUBLED credit card insurer CPP faces the loss of its banking facilities unless it can reassure lenders that its business is secure.
Barclays, Santander and Royal Bank of Scotland (RBS) are considering whether to withdraw financial backing from the York-based firm when the existing arrangement ends next year. The firm currently has borrowings of around £40m.
CPP’s local MPs Julian Sturdy and Hugh Bayley have now written to RBS chief Stephen Hester, saying they “strongly urge” the bank “to place the importance of local jobs at the forefront of any discussions with the business”. The company employs 1,300 people in the UK.
Last week the firm was hit by new allegations of mis-selling from the Financial Services Authority (FSA), raising fears that it could go out of business.
However on Friday it struck a deal with the regulator under which it will investigate thousands of past transactions and invest £10m-15m in changing its practices.
Shares in CPP were suspended last Monday and the firm has since announced it will not be paying a dividend for the 2011 financial year.