Banks are facing another mis-selling scandal that could cost the industry £200m in compensation payments.
The UK’s high street banks are in talks with the Financial Services Authority after one of the industry’s main suppliers of credit card insurance was fined a record £10.5m and told to pay what could be £14.5m in redress to its customers. The compensation relates to 300,000 customers sold insurance by Credit Card Protection. However a much larger number of credit card holders, around 4.1m were sold the CPP product by their banks. If each of the banks’ customers were to get the same l