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Archive for tag: PPI Payments

Could the Banks Owe Billions MORE in PPI Payments?

Banks and lenders could have been dealt another blow in the PPI saga this week with a could awarded £17,345 in compensation even though they were not mis-sold PPI.

Skyline

Christopher and Joanne Doran were awarded the sales commission they had paid, plus interest, on a loan and PPI they had bought.

This is the first time anyone has been awarded commission refund payments when the PPI policy was determined to have been legitimately sold.

Even though it sends a strong signal, for anyone else looking to claim back the commission they have paid on a PPI policy will need to go to court.

Under the Financial Conduct Authority ruling after the Plevin case, customers could claim back commissions payment - the money paid to firms on behalf of insurers for arranging their policy with customers - if it was considered excessive.

What this means is, customers could reclaim any amount of commission that was in excess of 50% of the premium.

And, as the Doran's proved, this can be done even if the PPI policy was not mis-sold.

Under the Plevin ruling, around 1.2 million complaints regarding excessive commission have been successful out of a total 13 million PPI pay-outs.

Setting a precedent?

The City think not.

The judge ruled that the couple were entitled to the whole of the commission - 76% - plus interest.

Currently, Paragon Personal Finance is deciding whether to appeal the case.

Whilst lawyers are toasting success claiming it could place another £18 billion debt at the door of banks to pay back to customers, the City experts think this isn't the case.

With £30 billion paid out to customers thus far, some experts believe that the number of claims left is lower than predicted although there are still some people who suggest that there are millions of customers yet to make a claim.

PPI deadline

The FCA has determined that all PPI compensation claims must be made by August 2019.

But what about commissions payments? Could you be owed more?

You could approach your lender and ask what commission payment was involved or contact your broker direct. They should supply you with this information as part of your claim.

If it has been determined that your policy was sold correctly, but you want to claim compensation for the commission, then you will need to contact your solicitor who can advise you further.

For all other PPI compensation claims, just pick up the phone and call Payment Protection Scotland!