Millions of Britons May Demand Lucrative PPI Payments in ‘Second Wave’ of Compensation

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Banks are facing a “second wave” of payment protection insurance (PPI) payments, according to reports.

It comes after a series of court rulings concluded that the products, which were sold to millions of Britons, were “unfair,” reports the Times.

The court rulings mean that those who were denied compensation or those who received only partial refunds could demand reimbursement of all their money, the newspaper reports.

Those who have never claimed compensation for a failed PPI, after the government imposed a deadline for submitting claims by August 2019, could also make a claim.

PPI was a type of insurance often added to products such as store cards, credit cards, mortgages, and loans.

Banks are facing a “second wave” of payment protection insurance (PPI) payments, according to reports. It comes after a series of court rulings concluded the products, which were sold to millions of Britons, were “unfair,” reports The Times

But insurance, which aimed to protect people if they couldn’t meet their payments – due to illness or unemployment, for example – has been widely mis-sold.

Customers were pressured into buying it, didn’t know they had it or wasn’t right for them.

Banks have already paid out £ 38bn in compensation for a failed PPI, as part of the largest consumer redress program in British history.

About 64 million PPI policies have been sold, most between 1990 and 2010, while around 32.4 million claims have been made, according to the UK financial regulator, the Financial Conduct Authority (FCA).

But according to the Times, that amount could rise sharply after a series of court cases, which means people can also complain that high commissions have been earned through the sale of the police, but they are not. did not say.

In some cases, the commission represented more than 95 percent of the cost of the policy and those commissions were never disclosed to clients, the newspaper reports.

M&S Bank customer has already received an additional £ 7,800, after initially receiving £ 3,000 compensation, Times reports

M&S Bank customer has already received an additional £ 7,800, after initially receiving £ 3,000 compensation, Times reports

Banks are also spending huge sums of money trying to fight the claims, including the Royal Bank of Scotland, which has hired a top lawyer to fight a £ 1,500 claim, the newspaper says.

Banks are also spending huge sums of money trying to fight the claims, including the Royal Bank of Scotland, which has hired a top lawyer to fight a £ 1,500 claim, the newspaper says.

In a 2014 judgment, the Supreme Court, in a case involving a widowed college teacher who was sold PPI on a loan, found this “unfair.”

Courts have since ruled that customers could have questioned the value of PPI policies had they been made aware of them.

One M&S Bank customer has already received an additional £ 7,800, after initially receiving compensation of £ 3,000, while another, who did business with HSBC, received an additional £ 4.00 after initially receiving £ 600, according to The Times.

Banks are also spending huge sums of money trying to fight the claims, including the Royal Bank of Scotland, which has hired a leading lawyer to fight a £ 1,500 claim, the newspaper says.

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