Wow, the banks could REALLY be in trouble..

Had lunch with a solicitor friend today and learned something very interesting. It appears another solicitor friend of his works for a partnership that has now won out of court settlements from credit card companies for two separate clients who claimed that their poor personal financial positions were due their credit limits being raised regularly on their cards over a period of time, without any background checks being done whatsoever. It seems that one of those involved was largely unemployed over a long period during which the credit card company continued to increase his credit facility!
    In the other case the card holder was earning substantially less than the time at which he was originally issued with the cards, again it seems that over a period of time his limit was increased gradually without any questions from the card issuer!
     My friend reports that both cases were settled out of court with the minimum of fuss! He is of the opinion that if this gathers momentum it has the potential to cause serious problems for the banking sector, along the same lines as the PPI scandal, but the compensation could be on another scale.
     Has anyone else heard about any similar cases? I would love to hear if anyone knows of such a case actually getting to court? Certainly the banks have enough bad news bubbling under at the moment, I wouldn't want to be sat on a great deal of bank stocks if this blows up..