PPI rule tweak opens door for thousands more compensation claims

0
Written by: Paloma Kubiak
07/11/2018
Thousands of people who’ve had a PPI complaint rejected or thought they weren’t eligible for compensation could get a second go at making a claim for a mis-sold policy.

The Financial Conduct Authority (FCA) has clarified its position relating to PPI claims made as a result of high commission charges.

Last year, the FCA announced firms would need to handle PPI claims where they failed to disclose at the point of sale that a large commission was payable out of the premium. This was as a result of the Plevin case heard at the Supreme Court.

But, there wasn’t clear guidance on whether PPI policyholders who may have inadvertently paid commission on an on-going basis were eligible to make a claim on these grounds.

As such, the FCA has updated its rulebook stating that firms should assess commission disclosures not only at the point-of-sale but also where it was paid in instalments.

The regulator has also launched a consultation on whether firms should write to around 150,000 PPI complainants who had previously had their claim rejected, to tell them they have the right to make another complaint. The letter would need to remind consumers of the PPI claim deadline – 29 August 2019.

Jonathan Davidson, executive director of supervision – retail and authorisations at the FCA said: “The final guidance resolves an area of uncertainty and will ensure fair and consistent outcomes for regular premium PPI complaints.”

Sarah Coles, personal finance analyst at Hargreaves Lansdown, said if you’ve had a claim rejected but may qualify for a payout, you needn’t wait for a letter.

“Anyone who wants to claim on this basis will need to submit it again, and you only have until 29 August 2019 to get it done, so it’s best to get cracking as soon as possible.”

Around 50 million PPI policies were sold between 1990-mid-2000s. To date, £32.6bn has been paid on around 20 million policies since 2011.

Coles said claiming PPI doesn’t have to be hard work.

“If you have any paperwork showing you paid PPI, you can complete a template on the Which? or Moneysavingexpert website and send it to your bank to reclaim your cash. It should take less than 15 minutes.

“Even if you don’t have a scrap of paperwork, you can get it sorted. Go to the FCA website and find the name of the provider you borrowed from – you’ll be able to click through to the provider and check if you had PPI with them. Once they’ve got back to you, you can submit your claim,” she said.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
self-employed, National Living Wage
Self-employed want government pension saving help: what they can do now

Self-employed workers want government help to stop them heading into a full-blown pension crisis, a survey has found.

Close