Fresh PPI Scandal could be about to break
Lenders in Britain could be on the cusp of setting aside another huge sum in compensation for the PPI scandal.
A ruling by the Supreme Court last November stated that failing to disclose large commission payments to customers taking out policies was in breach of the Consumer Credit Act. This practise was widespread within the mis-selling of PPI and of other financial products. The Financial Conduct Authority is set to decide how intensively the ruling is to be applied.
Britain’s ‘Big Four’ lenders (HSBC, Barclays, RBS, and Lloyds Banking Group) could be forced to pay up to £33bn in redress because of commission payments. Observers have identified the potential for this issue to affect other financial products and to become potentially more expensive for lenders than PPI.
Autonomous Research, a body which conducts research into financial companies, said:
PPI mis-selling claims, based on commission payment.
“If applied to other products (for example store cards and
car finance), this case could lead to a whole new wave
of consumer claims for the banks, with a bill that
could be even higher than the PPI tally.”
If you think you may have been mis-sold PPI, or any other financial product, don’t hesitate to contact our specialist Financial Mis-selling team on 0800 888 6888, or email [email protected]