The troubled banking sector faces a bill of up to ??1.3 billion to compensate millions of customers mis-sold card insurance and identity protection policies, regulators said Thursday.

The Financial Conduct Authority (FCA) said in a statement that it had agreed a compensation package with company Card Protection Plan Limited (CPP) and 13 banks and credit card issuers, including Barclays, HSBC, Royal Bank of Scotland and Lloyds Banking Group.