Published: Wed, May 24, 2017
Money | By Armando Alvarado

U.S. firm sues Barclays for £1.6bn over PPI misselling

Barclays is being sued for £1.6 billion in damages for payment protection insurance (PPI) misselling by a U.S. credit card company that bought a sub-prime lending business from the bank in 2007.

PBPs are similar in structure to payment protection insurance, or PPI, which banks mis-sold to millions of customers, leading to billions of pounds in fines, a court filing says.

CCUK Finance is the UK subsidiary of a US-based firm previously called CompuCredit. It purchased Monument from Barclays for a reported £390m - Barclays had bought Monument in 2002 for around $650m from USA subprime lender Providian.

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CCUK, formerly known as CompuCredit, has claimed £1bn in compensation, including interest in addition to a further £600m for alleged fraudulent misrepresentation by the British bank.

The Telegraph quoted the lender as saying in a statement last night that it believed the claims were "baseless and without merit, ' and that it would be 'vigorously defending" its position.

United Kingdom banks have paid over £34bn to settle PPI claims so far.

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