Most of us will recall the wave of PPI claims that led to banks paying out a whopping £38billion in compensation to millions of customers. Such was the scale of the PPI scandal that the volume of claims grew to become the largest consumer redress scheme in history.
Although banks may still be reeling from the damage to their balance sheets, unfortunately for them, a second wave of consumer claims is on its way that could easily dwarf the scale of PPI.
The deadline for PPI claims passed at the end of August last year and covered those who had been sold Payment Protection Insurance when they simply didn’t need it.
However, during the whole PPI legal process, a case brought to court by a Mrs Plevin ruled that banks and financial institutions were not just mis-selling insurance to cover repayments on credit cards, loans and mortgages but they were also taking eye-watering commissions of up to 95% at the point of sale on financial products.
A ‘new tsunami of claims’ expected
Now experts are saying that anyone who was not successful or never made a claim for mis-sold PPI may be eligible to do so in the new compensation gold rush The Sunday Times dubbed “PPI 2”.
This is a fresh nightmare for banks and financial institutions which were already caught out in the first wave of PPI. According to an investigation by the Daily Express, banks are ‘unfairly trying to use their financial clout in a desperate bid to stop this new tsunami of claims’.
According to analysts, the average commission charge on financial products was a staggering 69% of the total cost. The Plevin cases expected to emerge in the coming years is estimated to open the floodgates to millions of new claimants coming forward
Unlike the first wave of PPI claims, these new compensation pay-outs cannot be brought by commercial claims firms. They have to be brought by law firms because they must be lodged in court. The average claim in these new cases is thought to be about £4,500 with the total bill faced by banks and financial institutions, again, estimated to be in the billions.
Your opportunity to invest in consumer litigation
Ignite Invest is at the forefront of the investment market in the field of consumer litigation, which covers compensation claims for mis-sold financial products. The most appealing aspect of this market for investors is the fact that it doesn’t correlate with any other sector.
That means the market isn’t influenced by current events, or indeed any other economic sector. People will continue to make claims for compensation if they are eligible to do so, regardless of the state of the economy.
Ignite Invest offers a range of interesting opportunities to invest either directly or indirectly in compensation claims via accredited law firms, the only bodies authorised to process these types of cases.
We have different options for investors with fixed terms, great returns, low risk and affordably entry from just £10,000. You’ll also achieve capital protection in an uncorrelated investment while financial markets remain in chaos.
Find out more today with Ignite Invest on +44 203 808 2645 or +34 951 12 04 85.