Banks' PPI decision could be bad news for brokers
The banking industry's decision to abandon its appeal against the High Court's judgment on the mis-selling of payment protection insurance (PPI) could lead to a further flood of claims.
Steve White, head of compliance and training at the British Insurance Brokers’ Association said that while the decision was good news for consumers there was a worry that the decision would impact credit brokers heavily.
Credit brokers are in the same Financial Services Compensation Scheme (FSCS) pool as general insurance brokers and any failures in the credit broker market, as a result of PPI claims, would directly affect the amount that brokers would have to pay into the FSCS scheme.
“How many
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