CORRECTED-UK's FCA to announce mis-selling compensation scheme -report
(Corrects to remove the reference to PPI in the headline)
Aug 21 (Reuters) - UK's Financial Conduct Authority (FCA) will announce a compensation scheme on Thursday for customers who bought identity theft and credit card protection from British credit card insurer CPP Group, Sky News reported on Wednesday.
Sky News reported the FCA is set to announce that about a dozen financial institutions - including Barclays, Lloyds Banking Group, HSBC and Royal Bank of Scotland - have signed up to the deal.
Citing sources, Sky News said the compensation figure contained in FCA's statement could be between 1 billion pounds ($1.57 billion) and 1.5 billion pounds.
FCA declined to comment on the report. CPP could not be immediately reached for comment outside regular working hours.
Under the agreement, banks, which sold CPP products will write to customers to inform them that they may be eligible for compensation, Sky News said.
Some of the banks involved will make separate announcements detailing their individual financial exposure, Sky News said.
CPP customers will have to vote in favour of the agreement before it can go ahead.
($1 = 0.6374 British pounds) (Reporting by Karen Rebelo in Bangalore; editing by David Evans)