LONDON (Reuters) – British lender Paragon Banking Group said it will not appeal a ruling against it in a key case concerning the mis-selling of Payment Protection Insurance, Britain’s costliest consumer scandal.
The decision has wide implications for other PPI mis-selling cases because if Paragon had appealed to a higher court and lost, that could have set a precedent that could have sparked more lawsuits against banks, lawyers told Reuters.
British lenders have paid out around 34 billion pounds in compensation to customers mis-sold PPI.
Lloyds Bank has so far paid out 18.8 billion pounds in redress, while Barclays and Royal Bank of Scotland have paid an aggregate 15 billion pounds.
Paragon will not appeal the ruling against it in the case of Doran versus Paragon Personal Finance Ltd, a spokesman for Paragon told Reuters on Thursday.
Reporting By Sinead Cruise, Lawrence White and Emma Rumney, editing by Silvia Aloisi