CCUK Finance, who are a US based credit card company has announced that it is to sue Barclays Bank to the tune of $1.1 billion dollars, over Barclays’ role in the mis-selling of Payment Protection Insurance policies, on a subprime mortgage business that CCUK took over and bought from Barclays in 2007.
CCUK Finance has filed the lawsuit at the High Court in London. The claim is the largest sum of money ever sought by a person or a entity over the mis-selling of PPI.
Barclays released a statement where it responded to the allegations made in the lawsuit by saying that it would: “Be vigorously defending our position.”
CCUK Finance, which used to be known as CompuCredit, bought Monument and its portfolio from Barclays ten years ago. The £390m deal included an indemnity clause relating to customers’ claims over mis-sold payment protection policies.
Barclays has since paid out some compensation to former Monument customers.
However, CCUK alleges Monument’s credit card agreements were “worthless”, and is now claiming £1bn in damages from Barclays, which includes interest, together with £60m for Barclays’ alleged fraudulent misrepresentation.
Since January 2011 an estimated 7.5 million people have been paid a total of £23 billion in PPI compensation, the Financial Conduct Authority found in March.
In the last six months of 2016 alone, 160,650 complaints were made about Barclays’ insurance policies, most commonly payment protection insurance.
Members of the public must claim compensation they may be owed from banks before the FCA’s final deadline in August 2019.