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Following the near collapse of CPP, the banks – including the publicly owned Royal Bank of Scotland and Bank of Scotland, now part of Lloyds Banking Group – have been left to pick up the vast majority of the compensation bill.

The scandal involves 13 financial giants, including Britain’s big banks, such as Barclays, HSBC, RBS, Santander and Lloyds, as well as the country’s biggest building society Nationwide and credit card firms such as Capital One and MBNA.

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Simon Chouffot, from the Robin Hood Tax campaign, which wants new financial sector taxes to help tackle poverty, said: ‘The never-ending stream of dodgy dealings by banks puts your average scam artist to shame.

It shows they will try any trick to fleece the public.’ The policy has cost Mrs Ettridge, from Hornchurch, Essex, a large sum of money, although she is not sure of the full amount.

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