City regulators are reportedly poised to announce a compensation fund of up to £1.5 billion for victims of an insurance mis-selling scandal involving Britain's major lenders.
The scandal centres on York-based CPP Group, which sells card protection for banks and building societies, and has already been fined £10.5 million.
CPP has been working with lenders and regulators to put together a much larger compensation pot for customers, largely funded by the banks.
The Financial Conduct Authority (FCA) will today announce details of the scheme, confirming that the major high street banks have signed up to the fund of between £1 billion and £1.5 billion, according to Sky News.
Some of the banks involved will make separate announcements detailing their individual financial exposure, it was reported.
The FCA declined to comment.
Under the terms of the agreement, the banks which sold CPP products will write to customers to inform them that they may be eligible for compensation, with a court-backed mechanism set up to deliver the money, according to Sky.
It will come on the same day that CPP announces its half-year results.
Last month, the group secured its future by agreeing a new financing deal with its own lenders.
The mis-selling scandal ran between 2005 and 2011, during which time CPP sold 4.4 million policies and renewed almost 19 million.
Of the 4.4 million policies, it is believed only about 300,000 were sold directly by CPP, while lenders were responsible for 4.1 million.
Regulators criticised CPP for treating customers unfairly, selling them insurance they did not need, automatically renewing policies and exaggerating the risks of not taking out its insurance.
The group recently set aside £51.7 million to cover the fine, customer compensation and other costs - but warned this figure may rise further.