Millions of bank customers mis-sold payment protection insurance will be given the chance to claim compensation after a ruling in the High Court today.In what was described as a ‘huge victory’ for customers, the banking industry lost its claim that new rules on mis-selling PPI should not be applied retrospectively.
The banks could now be looking at a £4.5billion hit with customers each receiving, on average, £1,500.
However, the ruling could have detrimental effects to all customers as banks try to claw back the huge chunk of money they will have to pay to claimants.
PPI is the insurance sold alongside credit cards, loans and other finance agreements to ensure payments are made if the borrower is unable to make them due to sickness or unemployment.
The insurance is currently the single most complained about product to the Financial Ombudsman Service, which has received more than 200,000 complaints on the issue and finds in favour of consumers in three-quarters of cases.
This is Money, the Mail Online’s sister website, has been campaigning against PPI mis-selling since 2006 and has helped readers win back thousands of pounds in compensation. Read More
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