New PPI mis-selling scandal
With the current PPI bill costing UK banks and lenders £30.6bn and rising, you’d have thought the story couldn’t get any worse for the banks.
However, following a recent ruling in the Supreme Court, banks could face a further £33bn in this new PPI mis-selling scandal.
In more good news for consumers, this could even help with complaints that have previously been rejected by the banks.
So, why could banks face this huge additional compensation bill for the new PPI mis-selling scandal?
The Supreme Court case
Without getting into the nitty gritty of the case, it boils down to commission payments that were not disclosed to customers.
Basically, banks and lenders received commissions from PPI policy underwriters for selling products to customers.
These commission payments were, on the whole, never disclosed to the customer which has been deemed as being unfair.
The argument is that customers being unaware of the size of commission payments being handed out deprives them of the ability to make an informed decision as to whether the PPI policy represents value for money.
In the court case itself, Susan Plevin was sold a PPI policy worth £5,780 by Paragon Finance via a broker.
Of the £5,780 paid by Mrs Plevin, £4,150 was paid to Paragon and a broker by the insurance underwriter as a commission.
Mrs Plevin’s argument was that had she known that over 70% of the payments made for the PPI was actually commission, she would have questioned the value of the policy.
Ongoing PPI costs
We already expected the PPI scandal to rumble on for years without this new revelation, but the costs and time could rocket.
Have you received a rejected PPI case from your bank or lender?
Has your case been rejected by the Financial Ombudsman Service?
All is not lost if you’ve previously received a rejection so why not get in touch and Your Money Claim can build a legal case based on this new PPI mis-selling ruling.
Have you had PPI?
PPI was sold on all forms of credit, such as mortgages, loans, car finance, hire purchase agreements, credit cards and store cards.
Not sure whether you’ve been sold PPI?
Our fast and comprehensive checking systems that have been set up with almost all banks allows us to find out whether you’ve been one of the millions who have had PPI.
Not sure whether you qualify? Check here to see whether you may.
Our average successful customer award is £3,332**!
Want to know how much you may be owed? Why not try our PPI calculator.
Making a PPI Claim
Option #1: Fill in the ‘Start Your Claim’ form on this page. We’ll send you out a form in the post for you to complete. Once we’ve received the form back in the freepost envelope we provide, we’ll make a start on your PPI claim.
Option #2: Click the ‘Download Claim Pack’ button. Simply print out the form, complete it and send it back to us. Our address and email address can be found here.
Our experts are on hand to answer any questions you have via telephone, email or our live chat facility.
So….why wait, let’s get started!