I’ll be backdated

3 July 2018 By Christopher Thompson Follow @CGAThompson

A legal ruling implies UK banks may have to repay commission on missold loan insurance. Despite paying 18 bln pounds on wider PPI claims, Lloyds is only modestly adjusting its provisions. That would be encouraging if it didn’t have a track record of goofing its estimates.

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A UK court has ruled that a couple who were missold payment protection insurance were entitled to recoup the full amount of the commission they had paid rather than only being reimbursed commissions comprising more than 50 per cent of customers’ premiums, the Financial Times reported on July 2.

The Financial Conduct Authority told banks last year that commissions comprising more than 50 per cent of customers’ premiums should be paid back by banks.

UK banks have paid out a total of 30.7 billion pounds since January 2011 because of missold PPI policies, FCA data shows. The FCA has imposed a deadline of August 2019 for new PPI claims.

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