A new ruling on PPI claims means that thousands, maybe even millions of Brits are due a windfall if they were incorrectly sold the infamous payment protection insurance.
Britain’s biggest banks are braced for a further £5 billion bill for the PPI mis-selling scandal.
Royal Bank of Scotland and Santander yesterday became the first High Street giants to set aside more money as they prepare for a deluge of claims triggered by a crucial High Court ruling.
In an unscheduled announcement to the stock market, RBS revealed it had made a £500m provision, taking its total costs for the scandal to £4.3billion.
Spanish-owned Santander also said in its annual results that it has put aside another £450million to compensate customers mis-sold payment protection insurance, taking its total cost to £1.52billion.
Experts warned other banks will follow suit over the coming weeks.
Analysts at Investec predict Lloyds could be forced to make another £2.5billion provision, having already set aside £13.9billion, while Barclays could make another £1billion provision, having booked a £6billion charge already.
HSBC is expected to take a fresh hit of up to £500million, topping up its £2.63billion provision.
The new round of payouts follow City watchdog order that banks must compensate customers for secret commission charges on PPI policies. It follows a High Court victory by widowed college lecturer Susan Plevin.
She was not told that almost £4,200 of the £5,780 she paid out in PPI premiums was commission paid to the lender, Paragon Financial Services, and the broker that sold her the £34,000 loan.
There are thousands to be made from your role in being sold PPI, so contact your local bank to find out more.