HSBC and Barclays Bank
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Banks abandon fight against PPI compensation payments

9 May 2011 Last updated at 22:44 BST

Up to four million people could be in line for compensation after the banking industry gave up its legal fight over the mis-selling of payment protection insurance, a move that could cost the banks more than £6 billion.

The policies were supposed to cover loan repayments in the event of illness or redundancy.

Our Business Editor, Robert Peston, reports.