New PPI lawsuit could see victims receive thousands of pounds

A class action lawsuit has been filed against some of the UK’s biggest banks, it has been reported.

The law firm Harcus Parker is heading up the claim, which accuses banks of secretly charging 80% commission on sales of personal protection insurance (PPI) policies, the Sun revealed.

The banks named in the action are:

• Barclays
• Co op
• HSBC
• John Lewis
• Lloyds
• MBNA
• Nationwide
• RBS
• Santander
• Tesco Bank

Harcus Parker estimates the average payout for those joining the lawsuit will be about £2,500. There are already 350,000 claimants.

The story until now

Banks have already paid out about £36bn for PPI mis-selling. This came about after Citizens Advice made a super-complaint to the Office of Fair Trading about the extremely high profits banks had made from selling around 50 million policies.

The original deadline for customers to make compensation claims passed in August 2019.

The new claim

The new class action targets the billions of pounds in commission that was kept by banks.

It’s open to those people whose PPI claims were rejected or who only received back commission above a 50% premium.

It is believed the class action has a good chance of success as the Supreme Court ruled in 2014 that a bank’s failure to disclose a large PPI commission can be defined as unfair under the Consumer Credit Act.