View more on these topics

Court ruling opens banks up to £18bn in PPI payouts

A court ruling could result in banks paying up to £18bn in compensation to customers missold payment protection insurance.

The Financial Times reports on a Manchester County Court hearing in June where the judge decided a couple was entitled to get all of the 76 per cent commission they paid back in compensation.

The FCA said last year that commissions of more than 50 per cent were unfair and that anything over that point should be paid back to consumers by the banks.

According to the FT, lawyers say the Manchester County Court ruling could set a precedent and lead to thousands of claims for full compensation.

FCA: Why we picked Arnie as face of PPI

In the case, the couple said they were not told about the size of the commission that was paid to Paragon Personal Finance, owned by Paragon Bank.

Paragon received commission of nearly £8,000, or 76 per cent of the PPI commission.

Judge Pearson said the couple would not have taken the policy if they had known the level of commission.

Martin Lewis wins claim against PPI chaser that used his image

As a result, Paragon must pay the full PPI premium and accrued interest, not just the 26 per cent it would have paid under the FCA guidance.

According to the FT, commercial barrister at St John’s Buildings in Manchester Elis Gomer says if the case becomes precedent customers could get an extra £18bn.


Delivering advice and guidance in the workplace

Three advisers share their ideas and experiences of helping employees with their financial decisions The workplace is instrumental in engaging people to save for retirement. How are advisers helping employers provide advice or guidance to their employees? Telephone guidance Financial education provider and advice firm Wealth at Work recently launched a telephone guidance service to […]

Something chronic

Amanda Docherty, Senior Marketing Consultant, Royal London  I’ve just returned from a mini-break in Tenerife. Twenty girls on a hen weekend, so you can imagine there was a fair bit of eating, drinking and dancing. Although we did squeeze in a water park, boat trip and paddle boarding. It’s all about the balance!  There were a […]


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. Julian Stevens 3rd July 2018 at 11:45 am

    Upon reading this, it’ll be champagne and caviar celebrations for the CMC’s.

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm