LONDON, Aug 29 (Reuters) - Britain’s financial regulator said on Friday that banks and other financial services companies had reopened two and a half million old complaints relating to the possible mis-selling of loan insurance to make sure fair compensation was paid.
The Financial Conduct Authority also said the industry had so far paid out 16 billion pounds ($27 billion) to compensate customers mis-sold payment protection insurance. The policies were meant to protect customers who fell ill or lost their jobs but were often sold to those who didn’t need them or would have been ineligible to claim.
The FCA said that, following an investigation, it was not satisfied that some complaints received by banks in 2012 and 2013 had been treated fairly.
$1 = 0.6025 British Pounds Reporting by Matt Scuffham; Editing by Simon Jessop