Millions of customers to expect compensation for PPI mis-selling

PPI has been mis-sold on a huge scale Photo: ITV News

Banks who ripped off millions of people selling worthless insurance policies, were told today they must inform their customers they may be entitled to compensation.

Payment Protection Cover - PPI - was meant to help people pay their loans or mortgages if they fell ill or lost their jobs but were often not worth the paper they were written on.

Since 2005, more than 16 million policies were sold with a total estimated value of around £17 billion.

However, so far, the banks have set aside just £8 billion to compensate three Million people.

ITV News consumer editor Chris Choi reports on the mis-selling scandal.