LONDON (Reuters) - British lender Paragon Banking Group (L:PARA) 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 (LON:LLOY) Bank has so far paid out 18.8 billion pounds in redress, while Barclays (LON:BARC) and Royal Bank of Scotland (L:RBS) 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.