Regulators in the City are reportedly poised to announce a compensation fund of up to £1.5 billion for victims of an insurance mis-selling scandal by the York-based CPP Group.
The firm, which sells card protection for banks and building societies, has already been fined £10.5 million.
CPP has been working with lenders and regulators to put together a much larger compensation pot for customers, largely funded by the banks. The Financial Conduct Authority will announce details of the scheme today, confirming that the major high street banks have signed up to the fund of between £1 billion and £1.5bn.
Some of the banks involved will make separate announcements detailing their individual financial exposure, it has been reported.
Banks which sold CPP products will write to customers to inform them that they may be eligible for compensation, with a court-backed mechanism set up to deliver the money.