SCOTS who have been mis-sold PPI policies are cashing in with a second round of compensation.

Scores of clients of just one firm have secured second pay-outs from lenders who made them take out payment protection insurance in the 1980s and 1990s.

The trend comes amid concerns that cheated borrowers may have been short-changed by initial compensation offers.

Across the UK, around 38 million PPI policies were sold. Legal loopholes mean more than six million of these policies could now deliver unexpected first or second batches of compensation.

Some customers in England over recent years have found that their compensation was based on the false premise that they would still have bought PPI with their loans, but they would have got a better-priced product. Others are getting compensation having been initially turned down.

Now in Scotland efforts are being ratcheted up to give borrowers a second bit of the PPI compensation cherry.

Gerry Diamond, of the Financial Compensation Centre in Coatbridge, believes recent legal decisions across the UK could open the flood gates for more claims.

The veteran financial advisor recently retrained in law and spotted the opportunity.

He said: "I returned to university to complete a degree in law and came across some decisions which I thought would help some of my clients.

"I spoke to some solicitors who agreed, but could only take claims on a fee basis. Happily I was able to find a firm of solicitors and barristers, expert in banking and finance law, who were prepared to work no-win no-fee.

"By now almost everyone is aware that PPI policies were mis-sold. We have grown tired of the texts and calls but this is good news for millions of customers who could have received more or were rejected.

"The vast majority of existing claims were taken using well-established Financial Conduct Authority (FCA) rules but this does not remove a client's right to further legal action.

"We have passed more than 800 clients to our solicitors and so far we have had around 150 win additional monies or be paid out for the first time. The total is around £500,000 at the minute.

"We have had clients who were rejected but have now been paid out, and clients who had already won, paid thousands extra .We have even had clients who were told they had no PPI receive payments, one such award was more than £19,000."

Marianne Farrelly, from Bellshill, is one client who had already received compensation in the thousands for a mis-sold PPI which dated back from the 1990s. However, the 54-year-old has picked up a second payout in the hundreds. "I had thought I had got the money I was owed. But now I have a few hundred more, which really makes a difference."

Other claimants have had even bigger second payouts. One client who had obtained £2,700 compensation in September 2016 was awarded a further £13,500.

Banks usually handle their own PPI complaints under FCA rules with customers often representing themselves. Diamond argues that dealing with solicitors is more effective for customers.

He said: "Whilst studying law, a particular case was prominent in legal financial circles. Pleven – v – Paragon Finance. Whilst this was a PPI complaint, the client, Mrs Plevin, took it to solicitors rather than through FCA guidelines.

"There were many aspects to her claim but one very important one was the disclosure of commission at the point of sale. The law states that where an agent is paid commission from a third party, the customer should have full disclosure of this fact.

"This did not happen with any PPI sales, therefore, banks were clearly in breach.

"A typical PPI premium of about £2,000 would generate approximately £1400 in commission to the bank. Banks did not disclose this, as most customers would have seen how poor value for money the policy was.

"I concluded that legal action by consumers (even if they had already complained and been compensated) could lead to a better outcome for many clients."