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 £1.3 billion ($2 billion), 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.
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