Irish central bank investigates insurance mis-selling

DUBLIN, Oct 8 (Reuters) - The Irish central bank on Mondayannounced the names of six lenders under investigation overmis-selling payment protection insurance (PPI) and said it wasconsidering enforcement action against them.

It said the banks - Bank of Ireland , Allied IrishBanks , Educational Building Society (EBS), GE Money,Permanent TSB (PTSB) and Royal Bank of Scotland's UlsterBank - have been ordered to review sales of the insuranceproduct since August 2007.

Britain's banks have already set aside over 10 billionpounds ($16 billion) to compensate customers wrongly sold PPIalongside loans and mortgages in one of the country's worstconsumer financial scandals.

Policies were meant to cover repayments if customers fellill or lost their jobs but were often sold to people who wouldnot have been eligible to claim.

The Central Bank of Ireland said it has ordered the banks,including a seventh lender which asked not to be named, to startcontacting customers over the next few weeks, using independentthird parties.

It advised customers to wait to be contacted by their PPIseller.

The central bank did not say how many people might beaffected but media reports have estimated that 340,000 PPIpolicies were sold over the past five years.

(Reporting by Lorraine Turner; Editing by David Cowell)

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