LONDON, Aug 29 (Reuters) - Britain's financial regulatorsaid on Friday that banks and other financial services companieshad reopened two and a half million old complaints relating tothe possible mis-selling of loan insurance to make sure faircompensation was paid.
The Financial Conduct Authority also said the industry hadso far paid out 16 billion pounds ($27 billion) to compensatecustomers mis-sold payment protection insurance. The policieswere meant to protect customers who fell ill or lost their jobsbut were often sold to those who didn't need them or would havebeen ineligible to claim.
The FCA said that, following an investigation, it was notsatisfied that some complaints received by banks in 2012 and2013 had been treated fairly.
($1 = 0.6025 British Pounds) (Reporting by Matt Scuffham; Editing by Simon Jessop)
Barclays (BARC)
Lloyds (LLOY)
HSBC Holdings (HSBA)