UK watchdog agrees compensation for mis-sold card insurance

LONDON, Aug 22 (Reuters) - Britain's markets watchdog saidit has reached a deal with insurer CPP, 13 high streetbanks and credit card issuers to compensate customers up to 1.3billion pounds ($2.04 billion)for mis-sold credit cardinsurance.

"Seven million customers, who between them bought andrenewed about 23 million policies, will soon receive a letterfrom CPP giving more information on the process," the FinancialConduct Authority said in a statement on Thursday.

"The involvement of the banks and credit card issuersreflects the fact that they introduced customers to CPP'sproducts and so must share responsibility for putting thingsright."

It is the latest mis-selling scandal to hit Britain's bankswho have been forced to increase their capital buffers partlybecause of huge compensation payments.