Banks Face [Pounds Sterling]4bn Blow in PPI Mis-Selling Scandal; Tens of Thousands of Customers Sold Cover against Redundancy May Get Payments
Byline: Jo Thornhill
BANKS could be forced to reopen tens of thousands of mis-selling complaint cases over payment protection insurance and pay compensation of more than [pounds sterling]4 billion following a legal investigation. Even consumers who have never complained about the sale of a policy with a loan or a mortgage could find themselves being contacted by their provider and offered compensation.
A judicial review brought by the banks against the Financial Services Authority and Financial Ombudsman Service began last week at the High Court.
The banks argue that the criteria the watchdogs are using to decide on complaints is more onerous than the rules that were in force at the time the insurance policies were sold. They say it is unfair to apply the rules retrospectively.
But if the banks lose their case they will have to look again at thousands of policies …
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Publication information: Article title: Banks Face [Pounds Sterling]4bn Blow in PPI Mis-Selling Scandal; Tens of Thousands of Customers Sold Cover against Redundancy May Get Payments. Contributors: Not available. Newspaper title: The Mail on Sunday (London, England). Publication date: January 30, 2011. Page number: 83. © 2009 Solo Syndication Limited. COPYRIGHT 2011 Gale Group.
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