Massive Legal Action to Recover Hidden PPI Commissions Launched
A significant legal claim has been initiated by individuals who were victims of the Payment Protection Insurance (PPI) scandal, with the aim of recovering up to £18 billion in undisclosed commissions allegedly taken by banks and credit card companies.
This new group legal action seeks to put an end to PPI claims once and for all. While the initial wave of PPI claims centered on mis-selling, this latest legal action contends that financial institutions secretly pocketed substantial commissions, some as high as 95%, from customers who purchased PPI.
Wide Participation in Legal Challenge
A county court application for a Group Litigation Order was submitted on behalf of 2,518 claimants, targeting eight financial institutions, including Lloyds Bank, Barclays, HSBC, and Santander.
Remarkably, approximately 350,000 people have joined this ‘no win, no fee’ group legal action so far, and legal experts estimate that as many as six million individuals may be eligible to participate.
Voices of Discontent
Among those who have joined this new group action is retired lorry driver Paul Pharo, who expressed his outrage over the undisclosed commissions.
He stated, “I never knew anything about the high commissions they took. It’s like highway robbery – they’re behaving like modern-day Dick Turpins.”
Another participant, retired businessman Colin Timms, age 80, labeled the situation “scandalous” and even “criminal.”
Banks’ Concealed Commissions Deemed ‘Unfair’
The law firm Harcus Parker, leading the legal claim, argues that despite numerous lawsuits and compensation programs dating back to 1993, banks and credit card companies have only repaid a fraction of the undisclosed commissions.
These concealed commissions are considered “unfair” under the Consumer Credit Act, potentially obligating financial institutions to reimburse all PPI payments made by customers.
Continued Dispute Over PPI Compensation
While the PPI scandal led to a significant acknowledgment of mis-selling by banks, Harcus Parker asserts that the compensation provided thus far has been inadequate.
They suggest that individuals who previously received PPI compensation could be owed substantial additional sums, and those who had their claims rejected or never filed a claim might also be eligible.
Call to Action
Damon Parker, senior partner at Harcus Parker, emphasized the importance of addressing the long-standing issue of undisclosed PPI commissions.
He encouraged anyone who believes they may have a claim to check their eligibility through the claims website (www.ppiglo.com) and participate in the legal action.
Complex History of PPI Scandal
PPI stands as one of the largest financial scandals in history, with banks accused of selling insurance products to customers who often did not need them or could not benefit from them.
Despite multiple interventions by various authorities, including the Courts, Parliament, and regulatory bodies, banks have faced ongoing scrutiny over their handling of PPI claims.
Banks’ Need for Accountability
The banks now face renewed scrutiny over their alleged concealment of commissions, and individuals affected by these practices seek to hold them accountable.
The legal challenge represents a significant effort to shed light on the hidden financial arrangements surrounding PPI and provide justice to those who believe they have been wronged.
Financial Institutions’ Response
UK Finance, the body representing banks and building societies, confirmed that the deadline for PPI complaints was in August 2019.
However, they acknowledge that firms will address and respond to claims made through legal proceedings as required.