Banks Accused of Mis-selling of Identity Theft Insurance

In the latest scandal to affect Britain’s financial services industry, a number of major banks have been accused of mis-selling credit card and Identity Theft Insurance. The findings of the Financial Conduct Authority report that the policies were largely useless in that most policy holders were already covered against the risks of Identity fraud. It is estimated that the banks and credit card agencies will be required to provide £1.3 billion in compensation.

Consumer confidence in the major banks is already low after a seemingly endless trail of major scandals including the mis-selling of Payment Protection Insurance (PPI), the mis-selling of interest rate swaps to small businesses, excessive risk taking, bailouts and the LIBOR rigging scandal amongst others.