UK judge announces devastating ruling for PPI
While many banks and financial institutions had hoped to have seen the end of the Payment Protection Insurance (PPI) saga, a court ruling in South Shields yesterday has cast the industry into total and utter panic. Judge Jacqueline Smart ruled that a credit card holder, taking action against MBNA, was entitled to receive a rebate of her PPI payments because it appears as though MBNA failed to advise the customer that it was receiving a commission on every policy sold.
Even though there are ongoing issues regarding the sale of PPI, and whether hard sell tactics in the past have prompted many customers to acquire this insurance (which they may or may not require), yesterday's ruling could cost the industry billions of pounds. If the ruling is ratified, and credit card companies in the UK decide not to challenge the case, each and every PPI customer in the UK, who was not advised that their financial company was receiving a commission on the policy, may well be eligible for a full rebate.
However, as we have seen with the overdraft fees saga, the UK banking industry has a history of dragging out such situations for as long as possible to delay any potential compensation payments and make life as difficult as possible for those challenging their services.
Share this..
Related stories
BP has a scapegoat ready and waiting
It is believed that BP chief executive Tony Hayward is on the verge of leaving the group amid signs that BP is looking for a scapegoat for the disastrous oil spill in the Gulf of Mexico. It is almost inevitable that the company will look to draw a line under this situation as soon as possible and Tony Hayward is most definitely in the frame to take the lion's share of the blame as he readies himse...
Read MoreHas the UK government blocked the closure of Cheltenham and Gloucester?
Only two months ago Lloyds bank was adamant that all 164 branches of the Cheltenham and Gloucester would close as the bank sought to reduce costs and slim down for the future. However, Lloyds bank has today released a surprise statement confirming that the company is going to revisit the potential closure of the Cheltenham and Gloucester branches and until the review is complete the operation will...
Read MoreJacqui Smith under serious pressure as heat turned up
Home Secretary Jacqui Smith is this evening sitting on the verge of resigning from her role as Home Secretary. She has become embroiled in a bitter battle of wills with regards to the lucrative expenses claimed by MPs throughout the UK. While already under investigation by the Commons standards committee, regarding her second home allowance, she has now become the subject of a detailed leak from P...
Read MoreUK car market records best year since financial crisis
07/01/2014 Britain’s new car market recorded its best year for sales in 2013 since before the 2007 financial crisis. British consumers bought more than 2.26 million vehicles in the past 12 months, representing a rise on 10.5pc on the previous 12 months, consolidating Britain’s position as Europe’s second largest car market, behind Germany. The results have come on the back of growin...
Read MoreUK base rates to remain low for the foreseeable future
UK base rates are almost certain to remain at historically low levels for the foreseeable future after yesterday's disappointing gross domestic product data. Despite the fact that the Bank of England has injected billions upon billions of pounds of liquidity into the money markets there is no sign of a full steam ahead recovery in the UK economy. As a consequence, unless inflation balloons out of...
Read More