Some people may be due a refund of some of the PPI premiums that they have paid towards PPI. This is because of a recent court case called Plevin v Paragon Personal Finance Ltd in 2014. In this case which is often just called or referred to as Plevin the Supreme Court ruled that in some circumstances an undisclosed commission on PPI could result in an unfair relationship between the lender and consumer under the Consumer Credit Act 1974.
The main basis of a Plevin complaint is that the bank or other provider earned a high level of commission from the sale of PPI but did not tell you this when you bought it.
Not everyone who complains about PPI will be affected by the Plevin ruling. If you have already had a full refund of your PPI then there is no need to complain about unfair commission, as you would have already had everything back that you paid for PPI as part of your refund.
If you have already complained about mis-sold PPI but you didn’t get a refund you might be able to complain about unfair commission if any of the following 2 reasons apply to you
1-You took out the credit the PPI was sold with (for example, a loan or credit card) on or after 6 April 2007;
2-You took out the credit the PPI was sold with before 6 April 2007, and it was still running on or after 6 April 2008.
You do not need to know or explain how much commission was paid for your PPI policy. So if you are not sure you might want to complain about commission to the lender or provider.
In August 2017 The FCA introduced new rules and guidance about PPI complaints that mean banks and other providers now have to consider complaints about commission they earned from the sale of PPI. These new rules and guidance that the FCA has put in place say that if this PPI commission made up over half of the cost of the PPI (more than 50% of the cost of the policy), and this wasn’t made clear then the lender should give some of this money back to their customer.
New PPI complaints made since late 2015
If you complain about mis-selling of PPI your lender or provider will usually now also consider any commission that they may have earned, as part of your complaint. Your lender or provider should have told you in writing that they would consider the commission they earned as part of your complaint once the new rules came into force on 29 August 2017.
Remember – if you think that you may be affected by unfair commissions and would like to complain about this then you will need to complain to your lender or PPI provider about the unfair commissions by 29 August 2019.
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