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Millions of UK households stand to receive thousands of pounds in compensation from six major legal battles – covering everything from Mastercard charges to dodgy loans.
Millions of motorists could pocket a slice of a multi-billion-pound payout following revelations about the car finance scandal. The City watchdog has announced plans for a compensation scheme after confirming it will tackle the car finance controversy.
The Financial Conduct Authority (FCA) will launch consultations on the redress programme, which is expected to hit banks with a bill ranging from £9bn to £18bn when payouts commence next year.
However, drivers who were mis-sold car finance have been cautioned they’re unlikely to receive more than £950 per claim, reports Birmingham Live.
Bobby Dean, Liberal Democrat MP and Treasury committee member, described the mis-sold car finance issue as “the biggest consumer finance scandal since PPI”.
“Millions will be owed. The compensation bill is likely to surge above £10bn. Industry must learn that honesty matters and adjust their practices going forward accordingly,” he said.
Scott Dixon, who operates The Complaints Resolver, commented: “Many familiar names including easyJet, VW and M&S have been caught up in these class action claims. You may only get a few hundred pounds, but it’s power in numbers.”
Homeowners stung by “secret” insurance charges – £2,000
Thousands of flat owners are pursuing millions in compensation through planned legal proceedings against the firms that manage their apartment complexes. Legal letters, viewed by BBC News, allege that freeholders – those who own the blocks of flats – secretly received commission fees for arranging buildings insurance policies.
The letters suggest that this commission was then added to the service charges paid by the flat owners – or leaseholders – without their knowledge.
Legal experts propose that each flat owner could receive up to £2,000 in compensation. The companies all deny any rule violations.
Shoppers overcharged by credit card companies – £70.
Millions of shoppers could receive up to £70 each after a tribunal approved a settlement in a lawsuit against Mastercard, which originated from historic fees imposed on businesses by the card provider.
This decision follows a lengthy legal case dating back nearly a decade, initiated by a former financial ombudsman.
Walter Merricks argued that shoppers were charged higher prices after fees were incorrectly applied to transactions made over a 15-year period between 1992 and 2008.
It is not necessary to have owned a Mastercard at any point to be eligible for compensation. Mastercard declined to comment on the court ruling.
iPhone users could get share of £3billion lawsuit – £70.
Apple is facing a legal claim accusing it of effectively locking 40 million British customers into its iCloud service and charging them “rip off prices”.
Consumer group Which?
says the legal action – which it has launched – could result in a £3bn payout if it is successful, with the average customer receiving around £70.
Apple has dismissed the notion that its practices are anti-competitive, stating that users are not obligated to use iCloud. The tech giant pointed out that many customers utilise third-party alternatives and maintains it “works hard to make data transfer as easy as possible”.
Alan Davis, from law firm Pinsent Masons, predicted a likely increase in similar cases in the future.
“It is inevitable that further claims of this nature will continue to be brought given the very high value of the aggregate damages and the role of and incentive for litigation funders to support these claims which might not otherwise be brought without that financial support,” he informed the BBC.
If the £3 billion iCloud lawsuit against Apple proves successful, individual iPhone users could receive an average of £70. This figure is based on Which?’s assertion that 40 million customers could potentially be eligible for compensation.
The lawsuit accuses Apple of forcing users to use iCloud at what they deem to be “rip-off prices”.
Energy bill-payers could be due hundreds of pounds
Clare Spottiswoode CBE has been authorised by the Competition Appeal Tribunal to act as the class representative in collective proceedings seeking to recover damages for any loss which flowed through to domestic electricity bills in Britain from the power cables cartel identified by the European Commission.
Anyone who has paid an energy bill in Britain since 2001 is eligible to be included in the lawsuit.
Victims of data breaches could get thousands
Substantial penalties imposed for data breaches in recent years indicate that regulators are becoming increasingly determined to pursue organisations that fail to adequately safeguard consumer information.
This includes a group lawsuit against Marks and Spencer following its data security incident earlier this year.
The case is being spearheaded by Patrick McGuire, a partner at Thompsons Solicitors, representing Scottish victims of the cyber attack.
Thompsons Solicitors states that customers participating in the legal action may be eligible for damages relating to this heightened risk alongside monetary losses (present or future), distress, worry, and time invested in resolving problems or protecting accounts.
In conversation with ITV News, senior partner Patrick Mcguire explained: “The clients who have joined our class action against Marks and Spencers have done so because their valuable confidential personal details were stolen.
“It was the responsibility of MandS to protect that information and they failed completely to do so. They have breached data regulations and caused distress to our clients a significant number of whom have already been the victims of attempted scams.”
Thompsons Solicitors report that over 350 individuals have participated in the group action thus far, describing the scale of participation as “unprecedented” for such a case in Scotland. In a statement to ITV News, MandS said: “We communicated to our customers as soon as we could and told them that the data taken does not include any useable card or payment details, or account passwords. MandS does not hold full card details on its systems.”
MandS also stated they “have not received any claims.”
Compensation for mis-sold car finance loans – £950
Nikhil Rathi, the FCA’s chief executive, commented: “It is clear that some firms have broken the law and our rules. It’s fair for their customers to be compensated. We also want to ensure that the market, relied on by millions each year, can continue to work well and consumers can get a fair deal.
“Our aim is a compensation scheme that’s fair and easy to participate in, so there’s no need to use a claims management company or law firm. If you do, it will cost you a significant chunk of any money you get.
“It will take time to establish a scheme but we hope to start getting people any money they are owed next year.”
The supreme court case was brought by two.
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