PPI ruling a 'victory for consumers against banks'

MILLIONS of people mis-sold insurance will be eligible to join a new multi-billion-pound wave of claims after a major Supreme Court ruling.

- Sarah O'Grady

The judgment was hailed by lawyers as a win for ordinary people which will cost banks dear.

British lenders have already paid around £40billion in compensation to customers for mis-selling payment protection insurance, mainly between 1990 and 2010.

Outrageous

Now they could face another surge of around six million claims worth £18billion, say legal experts.

Senior judges unanimously dismissed an appeal by lender Canada Square Operations, which argued that under limitation laws it should not be forced to pay back PPI taken more than six years ago.

But the Supreme financial institutions Court has ruled could not rely on a limitation defence if they deliberately hid commission from customers.