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So far banks have paid out over £30 billion in compensation for PPI cases. And it looks like that number is going to skyrocket.
If you’re still a bit confused by all this PPI business, check out our article on the topic where we give you a nice overview. Basically, many people aren’t aware that they were sold PPI (payment protection insurance). PPI was mis-sold to many customers alongside loans, mortgages, credit cards and store cards. Often, people were told it was mandatory or it was added to products without consent.
A court ruling has opened the door to a new claims bonanza, which seems to suggest that even if PPI was not in fact mis-sold, you can still reclaim because the scale of commissions paid were excessively high.
People who have already claimed compensation won’t be getting any more BUT those that were rejected, will now be reconsidered! To put it into perspective, bear in mind that Lloyds Bank has so far paid out £18.8bn for mis-selling claims, while Barclays has paid more than £9bn and RBS nearly £5bn.
The deadline for PPI claims was 29th August, 2019, however if the ruling is upheld it may cause all sorts of havoc. A whole new onslaught of previously rejected claims could push everything further back and the ruling is likely to increase pressure on the FCA to remove the August 2019 time-bar on future claims. The situation is unstable to say the least, which is great if you’re looking to squeeze some more cash out of your rejected claim.
It’s a bit complicated but basically all you need to know is that in this new case the judge ruled that the entire PPI commission should be repaid rather than just that above 50%, as before. In reaching this judgement he rejected the FCA’s guidance, leading claims management firms to claim others will be entitled to new, higher payouts. Simply put, a lot of people who could not claim, now potentially can. But that’s only if this ruling stands, which remains to be seen.
Don’t get your hopes up too soon as the ruling is likely to be appealed.
Watch this space.