Who is affected?

Lloyds TSB has been fined for the way it mis-sold some of its "Extra Income Growth Plans".

These investment schemes are sometimes known as precipice bonds because of the high risks involved.

They were sold through the bank's branches between October 2000 and July 2001.

In total, 51,000 policies were sold.

Why were the bonds mis-sold?

Many people piled all their life savings into the bonds, because they offered a guaranteed return of more than 10%.

Were you mis-sold? Do you have genuine grounds for complaint? Just because the product hasn't performed doesn't mean you have been mis-sold. To make a complaint for mis-selling you must have been wrongly or inadequately advised

But while the bonds offered an attractive income, there were no guarantees on the original capital investment - and many investors ended up badly out of pocket.

While the bank did explain the risks within the small print, the Financial Services Authority (FSA) said Lloyds TSB had used aggressive sales techniques and did not do enough to warn of the risks.

The bank has admitted its staff should have been better trained.

The investments were often sold to cautious investors, who should not have been putting so much of their savings into such a risky product.

Who gets the money?

Some 22,500 sales or 44% of the total number of policies are deemed to have been mis-sold.

Lloyds TSB has agreed to pay compensation to:

• Around 16,500 investors who had never purchased an equity-related investment product before - and who used up 20% of their savings buying into Lloyds TSB's scheme;

• About 6,000 investors who before they purchased the bond, purchased one or more of Lloyds TSB's other equity related investment products and who purchased the bonds with more than 35% of their savings.

How do you get redress?

Lloyds TSB said all customers who, on advice, bought one of the bonds through one of its branches, will receive a letter in the next couple of days.

The letter will tell them if they are to receive compensation.

If someone feels they have been mis-sold, but is not at first included within the compensation scheme they must first complain to the bank in writing.

If they are still unhappy with the bank's decision, they can then complain to the Financial Ombudsman Service.

The body helps consumers resolve financial complaints (see link on right).

It is important to remember when making a case for mis-selling, that losing money alone is not sufficient to claim.

To make a complaint for mis-selling you must have been wrongly or inadequately advised.

Lloyds TSB has set up a helpline for customers: 0800 3284761.

The Financial Ombudsman Service can be contacted on: 0845 080 1800. It has useful information on mis-selling on its website (see link on right).