Mortgage broker John Bagguley, a founder of the Provincial Finance Company, is reportedly set to file a libel lawsuit against a former client after he was accused of mis-selling Payment Protection Insurance (PPI).
Banks and other lenders have been swamped with PPI mis-selling claims in the last year, as soon as the UK courts ruled that applicants were entitled to compensation. However, this clamour for PPI compensation now seems to be affecting smaller businesses, whether they have mis-sold PPI or not.
Mr Bagguley says he received a letter in which his company was accused of mis-selling PPI, an allegation which he asserts is untrue. He is now seeking legal advice in order to file a libel lawsuit. As a mortgage broker and a financial expert, it is likely that Mr Bagguley will have professional indemnity insurance in place to cover the costs of the legal challenge, whether it is successful or not.
Speaking to MortgageStrategy.co.uk, Mr Bagguley explained:
“I have consulted with the Financial Ombudsman Service and my solicitors, and neither sees any objection to my bringing an action for libel at the same time as I am conducting the usual complaints procedure.”