A new wave of payment protection insurance (PPI) complaints can be expected as around 150,000 customers will shortly receive letters highlighting that they could make a complaint under the Plevin ruling.
If the commission payment accounts for more than 50% of a PPI premium, and this commission was not disclosed to the customer, the policyholder can make a complaint under Plevin. The average commission on single premium PPI policies has been estimated as being as high as 67%.
The letters will now be sent by the firms that sold PPI to two different types of customer, inviting them to make a complaint to the firm:
- Around 10,000 people who were originally told they couldn’t claim on the basis of an undisclosed high commission payment. These complaints were often rejected by firms on the basis that the commission was disclosed at point-of-sale, but these people may also be able to claim if they weren’t reminded about the cost of the commission throughout the policy term
- Up to 140,000 customers who have previously had PPI mis-selling complaints rejected. These individuals have not so far had their claims assessed for undisclosed commission and have never previously received a letter about being able to claim for undisclosed commission
In a little more than six months’ time, from August 29, consumers will no longer be able to make a PPI claim. This means that time is running out for people to decide if they wish to make a complaint concerning this product, and the deadline applies to both mis-selling and Plevin-related complaints.
The 18 firms that sold the most PPI are funding the ongoing marketing campaign that aims to increase public awareness of the August deadline. This high-profile campaign has featured the likes of Arnold Schwarzenegger and Gok Wan encouraging consumers to decide once and for all if they wish to make a PPI complaint.
The Financial Conduct Authority says its efforts for the remainder of the campaign will focus on strengthening consumers’ understanding of what to do before the deadline, and on how to make a PPI complaint.
The Financial Ombudsman Service says it expects to receive 200,000 new PPI complaints in the current financial year, which ends on March 31 2019, and 250,000 in the 12 months to March 31 2020.
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