The firm is getting ready to set up a group action to seek compensation from HFC Bank, which is owned by
The mis-selling is estimated to have affected some 163,000 people, with customers on average having bought policies worth £2,000 each. Some customers have paid more than £5,000 apiece.
Clydes is now set to start an advertising campaign in national and regional newspapers over the coming weeks to attract potential claimants to ‘opt in’ to the action.
The case follows the firm’s landmark victory for consumer group Which? in a group action against JJB Sports for illegally fixing the prices of replica football shirts. A settlement agreed in January saw the sports retailer set aside over £100,000 in compensation for 500 consumers.
Allianz is understood to be looking into the merits of the class action and will determine whether to provide funding for the case.
The case comes after bodies including the Office of Fair Trading and the Civil Justice Council made a number of proposals designed to make it easier for consumers to seek redress.
Under current
