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Home » Blog » Another £33 Billion To Be Paid Out For PPI

Another £33 Billion To Be Paid Out For PPI

Landmark court ruling shows that customers of UK banks will be due ANOTHER £33 BILLION!

You would think that our Banks would want the PPI scandal over and done with and allow all their customers to reclaim PPI properly and by following the rules which govern them. But no, they continue to hide secret commission payments they received when they mis-sold you PPI.

A recent court ruling has found that by Banks not disclosing commission payments to you when they sold you PPI they were breaching the Consumer Credit Act 1974, one of the foundation Acts that your bank has to follow. As a result of breaching the rules the Banks could be set to pay another £33 Billion to those who successfully reclaim mis sold PPI. Your bank will not just send you a cheque, you have to make a claim against them and know why you were mis sold. This is where Caledonia Claims comes in. We deal with these types of cases every day and have been very successful. A number of our clients have successfully reclaimed over £20,000 for their mis sold PPI!

The court case was pursued by Susan Plevin who claims that she was not told that almost £4,200 of the overall £5,780 she forked out for PPI premiums was commission paid to the lender, Paragon Financial Services its broker that sold her a £34,000 loan. The court ruled in November that this breached the 1974 Consumer Credit Act. Britain’s biggest banks, which pocketed big commissions for selling PPI policies through branches or paid brokers to sell their products, are braced for another huge compensation bill.

You may have already tried to make a claim for mis sold PPI to your bank or building society and been rejected, as a result of this recent court ruling you may now be eligible to make a claim. Consumer campaigners have recently stated that banks could be deluged with new complaints, while millions of customers who have seen their PPI complaint rejected may now be owed compensation.

The world famous Martin Lewis, founder of the MoneySavingsExpert financial advice website, said: ‘There are hundreds of thousands, if not millions of people who have already complained about PPI and been rejected who may actually be due their money back. This case adds to that – with even more people brought into the mis-selling net.’

UKIP MP Douglas Carswell said: ‘The behaviour of banks is shocking. They give capitalism a bad name. They have behaved like a cartel guilty of racketeering at the expense of the customer for decades.’

We may never know exactly how much PPI was sold but it is estimated to be in the region of 45 million PPI policies over a 20 year period between 1990 and 2010. PPI was sold to you when you took out a loan or credit card. Due to the massive amount of policies sold and the common accounts it was sold with it is likely that you or someone very close to you has been mis sold PPI, you may not even know that you were sold PPI and could still be due a refund!

We have estimated that banks made around £2.5 Billion PER YEAR selling PPI because it was so lucrative, easy to disguise and very difficult to make a claim. You bank even sold it to customers who would NEVER be able to make a claim like pensioners or people who were self employed, even to students who didn’t have a job. It was often the case that you would have been told that you have to take PPI or you wouldn’t get the loan or credit card – which is a complete lie and a very poor sales tactic just to make commission.

It is now common knowledge that Banks fear claims management firms such as Caledonia Claims because we have been so successful reclaiming PPI for our clients. Where we have the advantage is we have actually worked in the Banks who are trying to hide their wrongdoings, so we know what went on and how to get your PPI back

Lloyds, which owns Halifax and Bank of Scotland, could face the biggest hit. The state-backed giant has set aside more than £13billion so far to compensate customers for PPI – far more than anyone else.

What Does That Actually Mean?

This means that you may now be eligible to claim any mis-sold PPI which you have paid to your bank. Even if you were mis sold PPI and you have lost out your Bank still gets a massive commission payment, which you will agree is not fair.

Reclaiming PPI from your bank can be very complicated and it can be difficult to get compensation on your own. Caledonia Claims can act on your behalf and reclaim what is rightfully yours, plus interest. If you’ve read the above and feel that you may have been mis sold PPI and are due to claim a PPI refund, we can.

How to get started

To start your claim on a No Win No Fee basis, complete our online form now to start your claim or call us now on 0141 416 1012.

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