This week saw lenders lose their High Court battle over PPI compensation, which means that banks will have to contact and pay compensation to millions of people who claim to have been mis-sold the controversial Payment Protection Insurance cover with loans and other forms of finance.

The result means that many more people will now make claims over the sale of this insurance, and it could end up costing lenders in excess of £4.5 billion to pay out the compensation. Banks are already sitting on many claims and complaints relating to PPI and many others will come flooding in. The decision has come as a blow for the banking industry but is a victory for consumer campaign groups.

Anyone that believes that they were mis-sold the insurance through being pressured into taking it out, being sold cover without being informed, or being sold cover when they were not even eligible to claim on it, could now find themselves in a position here they can get compensated and full refunds on the cover. Millions of claims have already been made and having ended up with the Financial Ombudsman, where most were decide in favour of the consumer.

After the ruling the British Bankers’ Association responded by stating: ‘We are disappointed with today’s judgment and now need to consider the details of it very carefully as well as next steps, including whether it would be appropriate to apply for permission to appeal. Any complaints that are directly affected by the judicial review and therefore cannot be decided will continue to be placed on hold until the next steps have been decided.’