23 October 2017
Since the mis-selling scandal broke, most people have claimed PPI compensation about the way in which PPI was sold to them and how the policy didn't match or meet their needs. But an important legal ruling has meant that customers could know claim more back in PPI compensation, even if you have already made a claim.
The background- Susan Plevin was a college lecturer who bought PPI on a large loan she took out some years ago. When the PPI mis-selling scandal broke, she decided to take a look at the policy she bought. She was surprised to find that the commission paid to the broker was very high, something she had not been told about.
The argument- Susan Plevin took her case to court, arguing that is she had known how much commission the broker secured on the sale of the PPI policy to her, she would have queried the cost of the policy. The commission was very high, over half of what Ms Plevin paid for the PPI policy was commission to the broker for arranging the policy.
The outcome- the court agreed. And thus, Ms Plevin received her money back as well as PPI compensation she claimed through her lender. What wasn't made clear was how this ruling affected other PPI compensation claims. The court said it was down to the regulator, the Financial Conduct Authority (FCA) to decide how this ruling would be applied to other cases.
The FCA decision- it took some time but the FCA has now decided how this ruling should be applied. They have told bank, lenders and financial companies to compensate customers who had PPI if the commission paid was higher than 50% of the cost of the policy and the customer was not made aware.
PPI commission claims are 'separate' from claims for mis-sold PPI; they are in addition to any compensation you (or haven't received) thus far. So even if your claim for PPI mis-selling has been rejected, you can still make a claim for the commission payment to be returned to you.
If you have already made a successful PPI compensation claim, your bank or lender should contact you with a further offer of compensation as a result of the commission ruling.
If they don't and you would like to know if you are entitled to more money, you can contact them and ask them to look at your case further.
From now on, with the ruling clear, we ensure that all new and existing PPI compensation claims are examined on two fronts: mis-selling and the payment of commission.
For customers who have already made claims through us, successful or otherwise, they can contact us for more information on how we can help.
This is your money, make sure you claim it back before the PPI deadline, 29th August 2019.