Glasgow: 0141 844 0017 * Edinburgh: 0131 224 0094 * Lanarkshire: 01698 286 463

PPI, Deadlines And Claiming Back Commission Payments

You may remember that some time ago, a consumer won a ruling against the company that sold her PPI for failing to disclose the amount of commission they were being paid for selling her a payment protection insurance (PPI) policy.

Clock

Many financial experts have been left wondering how the outcome of this case will affect PPI claims made in the past and those to come. It could mean that customers are entitled to yet more PPI compensation.

Financial Conduct Authority

The Financial Conduct Authority (FCA) is the banking industry regulator and they have decided how the Plevin case ruling should apply to PPI cases now and those settled in the past.

Of the amount of commission paid on the sale of a PPI policy was more than 50% of its cost and the consumer was not made aware, they are entitled to this money back.

The FCA has been consulting on a PPI complaints package. As well as looking to end PPI claims for compensation with the August 2019 deadline in place, they also wanted to be clear on the impact of the Plevin ruling.

The FCA consulted on;

  • The approach to fairness and redress in PPI claims
  • To reflect any previous rebates when customers cancelled PPI to be considered when reflecting the final PPI payment
  • To address and clarify how firms and banks assess fairness and redress where commission or profit-share rates vary

Putting the PPI deadline in place

Previous to the summer of 2017, the FCA would not entertain the idea of a PPI deadline simply because the numbers of customers yet to make a claim was significant. Some critics argue that the case has not changed very much with only 40% of people who have a claim have yet to do so. That leaves 60% of people with a PPI compensation claim yet to claim their money back.

Andrew Bailey the head of the FCA says that "Putting a deadline on PPI complaints will bring the issue to an orderly conclusion in a way that protects both consumers and market integrity".

With the impact of the Plevin case hot on the heels of the announcement of a firm PPI deadline, making sure all consumers get their money back is a priority.

What this means for you

As a consumer who was possibly mis-sold PPI, you need to be clear about whether you intend to make a claim for compensation or not.

Once the deadline has passed, you will have no way of claiming your money back for a PPI policy that was potentially mis-sold to you prior to July 2017. This could mean giving away your money for a second time and could be anything from a few hundred pounds to thousands of pounds.

Can you afford to let this money slip through your fingers? Why not contact a reputable and trusted claim management company specialising in PPI compensation claims? Contact Payment Protection Scotland today.

Post a comment

Sorry, comments are closed