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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.

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Although CPP took nearly a decade to turn a profit, it became enormously successful after he teamed up with more than a dozen banks to offer its services to all their cardholders - many of whom did not know what they were signing up for.

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.