Post date: Aug 22, 2013 1:34:54 PM
Reuters Business Report - Today's daily digit is 1.3 billion pounds.
That's the amount 13 UK banks and credit card insurers could be up for - to compensate consumers who were mis-sold credit card insurance.
Barclays, HSBC and RBS are among the banks affected.
The Financial Conduct Authority says customers were given misleading information and ended up buying protection they didn't need.Reuters' BreakingViews Economics Editor, Edward Hadas.
REUTERS BREAKINGVIEWS ECONOMICS EDITOR EDWARD HADAS:
"Effectively they encouraged clients - they didn't sell it themselves but they encouraged clients to buy this kind of insurance which is of virtually no value since actually credit cards are protected by identitiy theft by the banks and so this is just a fee garnering exercise."
It comes as banks are still paying out compensation for misselling payment protection insurance, which has so far totalled more than 10 billion pounds.
Reuters BreakingViews says industry-wide reform is needed.
REUTERS BREAKINGVIEWS ECONOMICS EDITOR EDWARD HADAS:
"One is an attitude issue, which is these are not our customers, these are our meat. These are profit-offering individuals and companies that we just have to milk and squeeze them as much as we can. That attitude has to change."
The FCA says around 7 million customers are affected.