Barclays is facing a £1.1bn lawsuit in one of the biggest claims for payment protection insurance (PPI) mis-selling, it emerged today.
Credit card company CCUK Finance – the British subsidiary of a US company – is claiming damages over mis-selling payment protection insurance at Monument, a subprime lending business it bought from the British bank 10 years ago.
The lawsuit has been filed in the High Court in London.
Barclays has rejected the claim saying, it will “vigorously” defend its position.
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.
In a statement issued late last night, Barclays said: “Over the last 10 years we have operated within the parameters of the deal agreed with CompuCredit and believe their recent claims against us are baseless and without merit.
“We will be vigorously defending our position.”