You could get thousands in PPI compensation – now!

A new ruling from the Supreme Court means that consumers in line for £billions in compensation in relation to undisclosed commission related to PPI.

The ruling over Canada Square v Potter, means that it doesn’t matter when you find out that the company that arranged PPI for you got a massive commission on that sale, you can still get compensation for it. So even if, today, you find out the PPI on a loan you took out in 2002 was mostly commission, you will be able to claim money back.

Banks are already having to lay aside tens of billions sterling to pay compensation to disgruntled former borrowers who can now claim money back.

The ruling

The ruling by the Supreme Court for Mrs Beverly Potter against Canada Square Operations Ltd upheld the findings of the County Court and Appeal Court, that Mrs Potter could claim compensation, even though her PPI purchase happened longer than six years before she claimed.

• Mrs Potter borrowed £20,787.24 from Canada Square, comprising a cash loan of £16,953.00 and a payment protection premium of £3,834.24. The agreement ended on 8 March 2010.
• Canada Square arranged the PPI policy on her behalf, not telling her that over 95% of the premium was paid to them as commission. The sum actually paid to the insurer was just £182.50.
• On 14 December 2018, Mrs Potter issued a claim against Canada Square, seeking to compensation on the PPI Policy she had paid for plus interest. She said that Canada Square’s behaviour had been ‘unfair’ within the meaning of section 140A of the Consumer Credit Act 1974. She was therefore entitled to apply for compensation set out in section 140B.
• Canada Square argued that it was too late for Mrs Potter to bring her claim, because section 9 of the Limitation Act 1980 imposed a six-year limitation period
• Mrs Potter contended that her claim was not time barred because the limitation period did not start to run until she found out about the commission after taking legal advice in November 2018.
• The Supreme Court unanimously dismisses Canada Square’s appeal. It holds that Mrs Potter’s claim is not time barred.

What this means for you

This means that consumers can apply for compensation for PPI policies where they were not told about the commission the lender took, even if it happened decades ago.

• If you are aware that you took out a PPI policy years ago and that the lender didn’t tell you about the huge commission they were getting on the sale, you can claim the money back plus interest.

The great thing about this ruling by the Supreme Court that was announced today is that it has massive implications for consumers.

There is the potential for them to claim billions in compensation for overpaid PPI costs from years ago. This is really good news for anyone who is struggling to pay their bills right now as it could be a much-needed windfall of thousands of pounds.

My advice is to see if you can find any paperwork for old loans you took out years ago and contact the lenders for compensation. It’s likely that pretty much any PPI policy sold back then through a bank or other lender included an eye-watering amount of commission.