UK officials strike deal to compensate consumers

UK officials strike 1.3 billion pound ($2 billion) deal for consumers mis-sold insurances

Associated Press

LONDON (AP) -- UK's Financial Conduct Credit Authority says it has struck a deal to pay consumers as much as 1.3 billion pounds ($2 billion) after they were improperly sold credit card insurance.

The authority said in a statement Thursday that it had reached an agreement with Card Protection Plan Ltd and 13 banks and credit card issuers. The authority fined CPP 10.5 million pounds last year for selling consumers insurance they didn't need or to cover risks that were greatly exaggerated.

The authority says 7 million customers will soon receive letters on the process. The redress per customer will depend on the type of policy they owned and how long it was held.

The scandal comes as another blow to banks, which have already faced a scandal for misspelling payment protection insurance.

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