Payouts expected to start in the spring once High Court approval has been received

Customers of troubled insurer CPP have voted in favour of a £1.3bn compensation package.

Seven million people who were mis-sold policies by the credit card insurer will receive an average of £200 compensation.

The FCA ruled last August that the policies, sold through high street banks, were mis-sold and asked for the compensation package to be approved by those customers affected.

Voting for the package ended on 3 January.

CPP said that around 18% of eligible customers voted on the plan, with 98% of those votes in favour of the deal.

The deal still needs authorisation from the High Court, with a date set for 14 January. If the package is passed, payouts are expected to start in the spring.

CPP chief executive Brent Escott said: “A key priority is to achieve the best outcome for customers affected by the historical issues in the UK business and customer approval for the scheme marks a further step forward in this process.”