Linklaters and Herbert Smith Freehills (HSF) have taken the lead legal roles on an agreement between the Financial Conduct Authority (FCA), Card Protection Plan (CPP) and 13 high street banks which could see £1.3bn returned to customers who were mis-sold insurance products.

Seven million customers, who between them bought and renewed around 23 million policies covering card and identity protection, may now be entitled to compensation, after the parties settled on a 'redress bill'.

The FCA said "customers were given misleading and unclear information about the policies so that they bought cover that either was not needed, or to cover risks that had been greatly exaggerated".

High street banks and credit card issuers introduced millions of customers to CPP, in addition to the company's direct marketing.

Herbert Smith Freehills (HSF) advised CPP on the agreement, with firm's team including dispute resolution partner Nik Kiri, finance partner Kevin Pullen and finance of counsel Debbie Standring.

Linklaters acted for the financial institutions which partnered with CPP, including Barclays, HSBC, MBNA, Nationwide Building Society, Santander and the Royal Bank of Scotland.

The magic circle firm's senior partner Robert Elliott was part of a team that included financial regulation partner Carl Fernandes and banking partner Bruce Bell.

The FCA was advised by its in-house team.

HSF's Kiri is currently serving out his notice ahead of his move to Linklaters, news of which was first reported in January. At the magic circle firm he will be reunited with Martyn Hopper, the legacy Herbert Smith financial regulatory group head who quit the firm last year.