UK banks hit with $2bn charge in latest scandal

Piggy Bank

The U.K. banking regulator says it has reached a deal with 13 major banks and credit card issuers to compensate customers who were mis-sold credit card protection.

The U.K. banking regulator says it has reached a deal with 13 major banks and credit card issuers to compensate customers who were mis-sold credit card protection.

The bill could be up to $2bn, the Financial Conduct Authority (FCA) said in a statement on Thursday.

The compensation will cover seven million customers who were mis-sold protection for identity theft and credit card fraud.

This is the latest scandal to hit the U.K. banking industry after mis-selling of payment protection insurance to customers and interest rate hedges to small businesses.

Barclays, RBS, Santander and HSBC are among the banks that will be hit by the new charges.

Click here for the latest on the markets.

JefferiesAnd the Best Place to Work in the global financial markets 2016 is...

Register for Financial Markets News Alerts