More UK banks to pay out in new mis-selling scandal

LONDON (Reuters) - Britain's financial regulator said a further seven banks have agreed to compensate customers they misled about interest rate hedging products and review their sales practices.

The Financial Services Authority said it had reached an agreement with Allied Irish Bank (UK) , Bank of Ireland , Clydesdale and Yorkshire banks , the Co-operative Bank, Northern Bank and Santander UK .

The FSA said in June that Britain's four biggest banks - Barclays , HSBC , Lloyds and RBS - had agreed to pay compensation following an investigation into mis-selling of the products.

(Reporting by Matt Scuffham)