Consumers defeat banks
Some good news for consumers today in that the major banks have lost a High Court challenge they brought to the principle that they will be liable retrospectively for any mis-sold payment protection insurance (ppi) policies. The decision has significant implications in that :-
- around 3 million people may now receive compensation
- The FSA estimates PPI providers will need to pay up to £1.3 billion in compensation for new complaints in the next 5 years, and up to £3.2 billion as a result of the obligation legally to review previous PPI sales and advise customers affected by mis-selling.