Barclays has promised to pay compensation to all those who it sold payment protection insurance and who made a complaint before April 20.
Customers will be repaid all their premiums and 8 per cent interest in a move the bank says will affect tens of thousands of customers and covers all the complaints put on hold during the PPI judicial review.
Barclays has previously set aside £1bn to cover the PPI it has mis-sold to customers.
Barclays has said it will review all complaints on merit after the automatic reimbursement cut-off date of April 20.
Which? chief executive Peter Vicary-Smith says: “It’s fantastic to see Barclays stepping up in this way, acknowledging their mistakes and refunding customers what they’re owed, no questions asked. Hopefully this will have a domino effect and other banks will follow suit –the sooner the banking industry can consign the PPI mis-selling scandal to the history books, the better.”