A number of UK financial groups have begun to contact customers who have been mis-sold financial policies with pre-emptive offers of compensation, according to a report on the online financial news service This is Money.

<p>The financial institutions said to be contacting customers include Barclays, Halifax, and insurers Friends Provident, and Legal & General. The report suggests that the UK Financial Services Authority insisted that the companies contact customers to offer recompense for mis-selling of endowment policies and other questionable practices.<br /><br />Although the compensation will cost the financial institutions millions of pounds, it is thought that the alternative would include a public fine from the Financial Services Authority, which would further damage the reputations of the companies.<br /><br />Barclays is considered to be the company that will be hardest hit by the development, with This is Money speculating that it may be reviewing as many as 20,000 cases dating back to 2000.<br /><br />The development should come as a welcome surprise to thousands of people who feel they have been mis-sold financial policies such as endowments or bonds over recent years. Many customers are having their complaints &#0039;reviewed&#0039; while others who have never even complained are also said to be in line for possible compensation.</p>