According to a claims management firm in Scotland, they have secured second payouts for Scottish consumers who were initially given unfair refund and compensation for their payment protection insurance claims. New legal loopholes — according to Scotland Herald — are “delivering unexpected first or second batches of compensation.”
Legal loopholes such as having compensation for an early lender shutdown on their claims have helped borrowers reclaim more than their refunds as PPI compensation values increase. Also, the Plevin ruling may also apply its landmark decision applied for all consumers mis-sold PPI. Susan Plevin’s case could mean financial advisers and insurance agents who profited more than 50% from the actual PPI price sold could have their PPI refunded on grounds the sale is invalid.
UK’s mis-sold PPI scandal has earned more than £40bn in total profits lost by banks with half of the amount repaid to consumers. The new legal loopholes may also increase banks’ administrative costs as consumers may seek the opportunity either to refund their insurance policies despite legitimate selling or claim an unfair initial compensation amount from their banks.
The new Scottish rule could help consumers who were turned down initially to reclaim their true compensation amount. In addition, banks who do not disclose their commission would need to refund the PPI repayments.