British banks face $2.6 billion bill over new mis-selling scandal
LONDON (AFP) - Britain's troubled banking sector faces a bill of up to £1.3 billion (S$2.6 billion) to compensate millions of customers who were mis-sold credit card insurance and identity protection policies, regulators said on Thursday.
Card holders were mis-led into spending about £30-£80 pounds a year on insurance, the watchdog said, spotlighting another case of sharp practice in the British financial sector which has been damaged by a number of scandals in recent years.
The cost of the compensation works out at up to the equivalent of US$2.0 billion or 1.5 billion euros.
The Financial Conduct Authority (FCA) said in a statement that it had agreed a compensation package with policy provider Card Protection Plan Limited (CPP), as well as 13 banks and credit card issuers.