The floundering economy will be thrown an unexpected £5billion lifeline in extra consumer spending this year as a consequence of banking’s biggest ever mis-selling scandal. This sum is part of the compensation being paid to millions of bank customers for the mis-selling of insurance policies. Until the middle of last year banks deferred compensating customers over the sale of controversial payment protection insurance while a battle with the Financial Services Authority raged in the courts.

In the end, the banks lost and Lloyds led the others in deciding to pay up. It took the rest of 2011 for banks to build up the huge logistical capability to handle millions of customer complaints. Now most complaints offices are operating at full speed, even though there are hitches.....Read more here--: Mis-selling payouts to boost economy with £5bn | This is Money