New £18 billion PPI scandal is ‘an absolute mega rip-off’, says Nigel Farage

Those affected, he said, could be due at least £3,000 each.

Mr Parker told GB News: “PPI was theoretically a kind of insurance that would protect you from not being able to repay your loans.

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"But the problem with it was first of all, it was bad insurance.

“It frequently didn't cover what it was supposed to cover.

"If you were self-employed, for example, it didn't cover you obviously, and often people were covered for that risk anyway.

“But the big issue, the one that hasn't I think been adequately publicised, is the fact that for every pound you paid in PPI premium, between 75% and 90%, 95% sometimes, was a commission paid to the bank.”

Mr Farage responded: “This is an absolute mega rip-off. And this was never declared?”

Mr Parker said: “It was never declared, it was a secret commission.

"It's been found by the Supreme Court in PPI cases to be against the provisions of the Consumer Credit Act, it's unfair.

“Frequently people don't know and this is the essence of the secret commission claims, you don't know that you pay the secret commission but often you don't even know that you have PPI, it might have been in the statement, but you had to be looking carefully to see it.“

PPI started to be sold in probably in the 1980s, 64 million policies. So overall, and although we think probably about £50 billion pounds has been returned to customers including the expenses of the banks, £18 billion is still in the banking system to be returned to customers.”

Mr Parker said most people are under the false impression that they can no longer make PPI claims and he is organising a class-action legal case involving 50,000 people who want their money back

He said most people will not be aware that they had PPI but the firm has set up a website - ppiglo.com - where people can register to join the action.

“Sign up, we'll check for you. And 350,000 people also have already asked us to check and we have 50,000 clients ready to go on these cases,” Mr Parker said.

“It depends very much on how they use their credit card, what kind of PPI it was, but if you do an averaging out of £18 billion and 6 million people, we think it amounts to about £3,000 pounds per person.”

He added: “One of the stories is that PPI stopped, it didn't stop but it was supposed to stop in 2019. Remember those Arnold Schwarzenegger adverts…that was to encourage people to come forward to claim to the FCA scheme.

“But that was a peculiar scheme because it didn't really give people back everything that they'd lost or been charged.”