UK credit card users are owed compensation after a PPI-like product, fraud protection, was discovered to be mis sold by bank employees. About two million of the UK’s population are owed recompense for the redundant product.
The insurance product helped protect users from the use of lost or stolen cards. The product is redundant because by law, card issuers and banks will handle the purchase made by the party finding the lost or stolen cards should it be reported the same day.
Eleven banks who had been involved in Forex and Libor rigging, payment protection insurance mis selling and other financial scandals, HSBC, Lloyds, Barclays, Royal Bank of Scotland and Santander, marketed the products sold by Affinion International Limited
The looming payouts are the latest in a series made by British Banks.
Should the FCA declare a deadline for PPI claims, banks will still have to resolve the new wave of credit card fraud insurance claims.
The case is similar to the Card Protection Plan Limited, who had also issued a similar redundant insurance policy.
Aside from owing £27 million for PPI, banks still have lots to pay for. Santander was recently fined £12.4 million by the FCA for widespread failings in its investment advice.