UK banks might lose billions: Double trouble from old and new scandals
Major UK banks face two massive legal challenges over hidden commission payments. A new £18bn PPI lawsuit emerges while car finance scandal continues to grow - total claims could reach £34bn
British banks are dealing with a double-whammy of financial problems — a fresh £18bn PPI lawsuit and an on-going car finance mess that could cost another £16bn (these numbers might give anyone a heart-attack)
Harcus Parker legal team is pushing for a new class-action against big-name banks like HSBC‚ Santander‚ and Lloyds Bank. They say these banks kept quiet about getting huge commission payments: up to 95% on PPI sales‚ which wasnt fair to customers
The car finance trouble is getting bigger too; some experts think its gonna be as big as the PPI scandal from 5 years ago. The Court of Appeal said car dealers cant get secret commission from lenders — thats gonna open up a whole can of worms
We believe banks should pay what is due; no more no less
Investment expert Gary Greenwood from Shore Capital thinks this double-trouble could make a big-time mess: “Its gonna burn a significant hole in banks balance sheets“. The FCA (theyʼre like the bank police) is giving lenders more time to deal with all these complaints; probably cause theyre getting tons of them
- Banks might have to pay huge compensation
- Customer loan costs could go up
- Smaller banks might not survive
- Legal firms are looking for more cases
The High Court will decide in early-25 if this new PPI case can go ahead. Meanwhile banks are trying to fight the car finance ruling in the Supreme Court; but nobody knows how thats gonna turn out
