Thousands of divorced women deprived of PPI payouts by NatWest and Royal Bank of Scotland will receive compensation, Money Mail can reveal.
State-backed RBS-NatWest failed to pay separated and divorced women their legal share of payouts for mis-sold payment protection insurance (PPI).
In an email, the bank, which is 73 per cent owned by the taxpayer, admits it was in the wrong and has changed its policy.
All banks sold PPI alongside credit cards and loans in case borrowers struggled to repay, but few needed it or could claim on the policies.
Banks have set aside £25 billion to pay compensation for mis-sold PPI — of which RBS-NatWest’s share is £4.7 billion.
However, it has emerged that where a couple had a joint loan and then split, RBS-NatWest gave compensation to just one partner, typically the first named on the policy, often the husband.
The bank will issue payouts to those affected. Many will be single parents and working mothers who may be due thousands of pounds.
Other major banks are thought to have complied with banking rules and divided PPI payouts equally between separated partners.