Business
Update: Discussions with Business Partners
Update: Discussions with Business Partners.
About this update from Cpp Group Plc
[{"type":"text","content":"\n \nRNS Number : 6498E CPPGroup Plc 11 April 2011 \n \n\nCPPGroup Plc \n \nUpdate: Discussions with Business Partners\n \nOn 28 March 2011, CPPGroup (\"CPP\" or \"the Group\") announced that it is in discussions with the FSA in relation to certain issues surrounding the sale of the Group's Card Protection and Identity Protection products in the UK. Further to this announcement, one of the Group's business partners, Barclaycard, has decided to stop sales in the call to confirm channel operated by the Group whilst it completes a review of this channel. \n \nIn the call to confirm channel, which is similar to the card activation channel, CPP products (both Card Protection and Identity Protection) are offered to Barclaycard customers who call in to confirm receipt of their newly issued credit card.\n \nThe Group will continue to offer Card Protection to Barclaycard customers who currently hold the Identity Protection product and who call the Group's customer service department. Barclaycard will also continue to offer Identity Protection and Card Protection to its customers in all their existing channels.\n \nSales to Barclaycard customers in the call to confirm channel are currently less than 2% of Group revenue. The impact on underlying operating profit in 2011 and 2012 will be immaterial although reduced sales in 2011 and 2012 will have an adverse impact on the profitability beyond 2012 as the renewals revenues (upon which CPP pays a smaller commission to its Business Partners) will also be lower.\n \nThe Group has over 200 Business Partners and has been encouraged by the support received in connection to the ongoing discussions with the FSA. CPP remains actively engaged with its business partners and is working with them to respond appropriately to the current situation, and any product sales as have been suspended by business partners other than Barclaycard have to date been at levels which are not material to the Group. Whilst the Group believes that new business volume uncertainty may remain whilst the FSA investigations progress, the Board continues to believe in the ongoing relevance and consumer appeal of its products and services.\n \nThe Group continues to work with the FSA in relation to its ongoing investigation. At this stage the Group cannot provide any further inf...