August 29 2017 marked both the start of the Financial Conduct Authority (FCA) campaign regarding the payment protection insurance (PPI) claims deadline, and the date from which commission-related PPI claims (known as Plevin claims) could be tabled.
Hence it is not surprising that the Claims Management Regulator at the Ministry of Justice (MoJ) has chosen to address the issue of PPI in its latest bulletin to claims management companies (CMCs).
‘Plevin’ is a reference to a successful court case brought by Mrs Susan Plevin, who argued that when the firm that sold her PPI failed to disclose the existence of a large commission payment, it created an ‘unfair relationship’ under the Consumer Credit Act. Hence it is now possible to bring a PPI claim on the grounds that the firm failed to disclose the size of a commission payment that amounted to at least 50% of the premium.
CMCs are warned that Plevin complaints should not be tabled by anyone who has already received full redress for a PPI policy on the grounds of mis-selling.
Where a PPI mis-selling complaint was rejected more than six months ago, and the matter has not already been referred to the Financial Ombudsman Service, then a new complaint will need to be tabled if the consumer believes they have grounds for a Plevin complaint. If a consumer decides to pursue a Plevin complaint via a CMC, then a new Letter of Authority will need to be completed.
The FCA are writing to some customers who have had mis-selling complaints rejected, to inform them that they may have grounds for a Plevin complaint, and the MoJ says it would be “unfair and misleading for [a CMC] to omit this information in marketing or communications with clients.”
Later in the bulletin, the MoJ reveals its concerns over companies in the PPI arena who continue to submit unjustified claims where no PPI policy ever existed, or where duplicate claims are being submitted for the same client concerning the same product. The MoJ warns that companies that fail to gather sufficient information from clients could be subject to enforcement action.
CMCs operating in all areas of the claims sector are warned in the bulletin not to use misleading pricing by excluding VAT from published information concerning the levels of their fees.
CMCs are alerted to a course being run by the Legal Ombudsman on September 11, which will look at complaints the Ombudsman is receiving about CMCs, what these concern, and how these complaints should be handled.
The information shown in this article was correct at the time of publication. Articles are not routinely reviewed and as such are not updated. Please be aware the facts, circumstances or legal position may change after publication of the article.