The answer is: quite possibly, but not in the way it has been sold recently.
The Judge ruled that she was falsely misold PPI (Payment Protection Insurance) when she took out the credit card back in 2002.
The benefit of PPI insurance is that it means that you can embark upon life projects that you wouldn't be able to do without a loan of some kind-becoming a homeowner, starting a business, even having a child-without having to worry unduly about what would happen if disaster struck and you were no longer able to hold up your end of the financing arrangement. If you failed to meet your repayments/credit card bills, obviously this could cause you great stress and further financial loss, and also tarnish your credit history. Should your mortgage go into arrears, this could even threaten the roof over your head.
Lender MBNA was trying to sue the mother-of-three, from South Shields for the remaining balance on her Sunderland AFC-branded credit card. Although Lynn was able to pay the bill, her circumstances changed when her full time job changed to part time house, which added to her financial pressures.
A judge ruled MBNA had breached the Consumer Credit Act, partly because the credit card provider earned commission from the insurance company for the policy it had sold, without telling Mrs Thorius. It is feared that the ruling could open the floodgates for millions of pounds worth of similar claims against banks and building societies.
However, this applies to people who were self-employed at the time of arranging the PPI, even if they had an apparently healthy and sustainable income.
'Consumers now have the authority of the court to bring a claim in such a way that banks and credit card companies will be unable to defend it.
Payment protection insurance claims aim to recover the money spent by customers on their policies when brought by reputable claims lawyers. Although regulations are now being put in place to make sure that companies offering PPI alongside loans improve their practice, there are still, of course, many customers who have already spent large sums of money on mis-sold PPI. Should they decide to, nearly all of these people are probably in a position to go to claims lawyers with genuine payment protection insurance claims and have a good prospect of success.
The Judge ruled that she was falsely misold PPI (Payment Protection Insurance) when she took out the credit card back in 2002.
The benefit of PPI insurance is that it means that you can embark upon life projects that you wouldn't be able to do without a loan of some kind-becoming a homeowner, starting a business, even having a child-without having to worry unduly about what would happen if disaster struck and you were no longer able to hold up your end of the financing arrangement. If you failed to meet your repayments/credit card bills, obviously this could cause you great stress and further financial loss, and also tarnish your credit history. Should your mortgage go into arrears, this could even threaten the roof over your head.
Lender MBNA was trying to sue the mother-of-three, from South Shields for the remaining balance on her Sunderland AFC-branded credit card. Although Lynn was able to pay the bill, her circumstances changed when her full time job changed to part time house, which added to her financial pressures.
A judge ruled MBNA had breached the Consumer Credit Act, partly because the credit card provider earned commission from the insurance company for the policy it had sold, without telling Mrs Thorius. It is feared that the ruling could open the floodgates for millions of pounds worth of similar claims against banks and building societies.
However, this applies to people who were self-employed at the time of arranging the PPI, even if they had an apparently healthy and sustainable income.
'Consumers now have the authority of the court to bring a claim in such a way that banks and credit card companies will be unable to defend it.
Payment protection insurance claims aim to recover the money spent by customers on their policies when brought by reputable claims lawyers. Although regulations are now being put in place to make sure that companies offering PPI alongside loans improve their practice, there are still, of course, many customers who have already spent large sums of money on mis-sold PPI. Should they decide to, nearly all of these people are probably in a position to go to claims lawyers with genuine payment protection insurance claims and have a good prospect of success.
Source...