CPP's insurance policy mis-selling bill rises by £3m

Credit card protection insurance business CPP Group has increased its bill for compensating customers for alleged mis-selling, wiping a third off the company's shares.CPP, which was hit by a £10.5m fine from the Financial Conduct Authority in 2012 for mis-selling of policies, said its provision for customer redress and linked costs had increased by £3m.It said the total cost provided for redress and other expenses was £72.8m and the amount left was £14.9m.CPP announced in November that it was putting itself up for sale and launching a £9m fund-raising exercise. It said at the time that it had made "encouraging progress" in restructuring talks with lenders and expected to finalise negotiations in the coming weeks.On Friday, it said the restructuring talks, the fund-raising and consideration of a potential sale of the group were on-going and further announcements would be made in due course.Shares fell 2p or 33.3% to 4p at 10:17 in London.