Millions of people could be receiving compensation for being mis-sold credit card and identification protection. British Banks will share up to £1.3 billion in compensation to over 7 million people, which on average is £185 a person.
Thirteen Banks including Santander, Royal Bank of Scotland and MNBA have agreed to a compensation scheme. This would compensate customers who were mis-sold products by the insurer CPP. The city regulator, the Financial Conduct Authority (FCA) said that the banks along with CPP (the company behind policies) has agreed to the compensation package which is likely to start from next spring. The FCA stated that customers had been “given misleading and unclear information about the policies”. The FCA has said that customers can expect to receive letters from the end of August explaining how to get compensation. Before the compensation scheme is given a green light, it has to be voted on by customers and allowed by the high court. After it is approved, the FCA said that the customer will need to complete a single form.
Britain’s banks continue to set aside millions for for payment protection insurance (PPI) and interest rate swaps mis-selling. There is still an estimated £15 billion compensation bill faced by the banking industry, which is approximately double the cost of the London 2012 Olympics.
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