Supreme Court judgment unleashes fresh round of PPI compensation

A case that tested the time limit for claims of unfairness under the Consumer Credit Act has opened the door for more litigation over undisclosed PPI commissions. Banks face paying out billions more under an ensuing class action, reports Denis O'Connor.

Denis O'Connoris a fellow of both the Institute of Chartered Accountants in England & Wales and the Chartered Institute of Securities and Investment. He was a member of the British Bankers' Association Money Laundering Committee from 2003-10 and a member of the Joint Money Laundering Steering Group's board and editorial panel between 2010 and 2016. He has been a frequent speaker at industry conferences on financial crime issues, both in the United Kingdom and abroad.

Following a recent Supreme Court judgment where Royal Bank of Scotland lost a case involving Payment Protection Insurance (PPI), [1] a law firm is seeking to launch a class action against financial services firms for compensation totalling an estimated £18 billion. Additionally, the decision by the Supreme Court calls into question RBS' compliance with the Financial Conduct Authority's Principles for Businesses 6 - Treating Customers Fairly.