A new landmark ruling aside from Plevin would see banks paying an additional £18 billion in the last year of PPI claims before 29 August 2019.
Christopher and Joanne Doran complained about the high commission their agent received upon selling them a payment protection insurance policy. Upon investigation by a Manchester Court, the agent received 76% of the policy’s total value as commission. The courts ruled in favour of the Dorans.
This is the second landmark case against Paragon’s Bank, Personal Finance.
St John’s Barrister Elis Gomer had already mentioned most PPI cases find resolution behind closed doors. The banks settle with consumers demanding a full repayment of the unfair commission quietly. Gomer said the lack of spotlight towards this issue is appalling and revealing it will unveil banks still have billions to pay for their shortcomings.
UK’s PPI crisis has reached more than £40 billion in earmarked refunds to consumers. Over £23 billion has been returned to consumers. However, banks still have a way to go.
Reports concerning PPI complaints from the FOS and banks show that PPI still leads the biggest financial product complaints figure with 895,000 or 29% of the total number of financial product complaints for the year. However, the figure was still lower compared to the 927,000 in the first half of 2017.