You are here

Bank court defeat 'A victory for consumers and for fairness'

Citizens Advice Scotland (CAS) have said today’s landmark High Court court decision against the British Bankers’ Association is a major victory for consumers and for fairness.

The banks were challenging a Financial Services Authority ruling that allowed people to make retrospective claims for mis-sold insurance when taking out a loan. People will now be able to make such claims.

 CAS Chief Executive Lucy McTernan said,

 “This ruling will help people who have been the victims of the mis-selling of Payment Protection Insurance (PPI), and we hope that it will spell the beginning of the end of this unfair practice.

 “CAB advisers across Scotland regularly see cases of people who have been mis-sold insurance and are having to pay for services they feel they did not ask for and do not need. Those few extra pounds a week can make a big difference to a household budget – especially at the moment when times are so hard for so many families.

 “Insurance sellers are complaining about this change, but the bottom line is that it will only affect those who have traded unfairly. If sellers don’t want to have to pay compensation, the answer is very simple: don’t mis-sell your services. This is a victory for consumers, and for fairness.”

CAS spokespersons are available for interview. Call Tony Hutson on 0131 550 1010.