UK lenders in new insurance mis-selling scandal

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UK lenders in new insurance mis-selling scandal

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Britain’s banks are to be hit with another big bill for mis-selling financial products to their customers.

This time it involves credit card insurance policies

Thirteen banks and credit card issuers, along with the insurance company CPP, have agreed a deal with regulators under which they will pay out the equivalent of 1.5 billion euros to seven million customers.

The Financial Conduct Authority said: “The involvement of the banks and credit card issuers reflects the fact that they introduced customers to CPP’s products and so must share responsibility for putting things right.”

The FCA said customers were given misleading and unclear information about the policies and ended up buying protection they did not need.

This is the latest in a string of mis-selling scandals in the UK that has resulted in huge compensation payments.

Banks are still paying out compensation for mis-selling payment protection insurance (PPI), which so far has totalled well over 10 billion pounds (11.67 billion euros).

The banks and credit card issuers involved in this problem are Bank of Scotland, Barclays , Canada Square Operations, Capital One, Clydesdale Bank, Home Retail Group Insurance Services, HSBC, MBNA, Morgan Stanley, Nationwide, Santander, RBS and Tesco Personal Finance.