31Oct

Claims management company We Fight Any Claim appears to have reached the end of the road in its efforts to have the payment protection insurance (PPI) claims deadline set aside.

The company had argued that allowing authorised firms to refuse to consider PPI complaints made after August 29 2019 would constitute a breach of the Financial Conduct Authority (FCA)’s legal responsibility to act in the interests of consumers.

However, the Court of Appeal has refused the company’s latest application, and this decision is final and cannot be appealed further.

We Fight Any Claim’s legal advisor Mark Davies reacted to the ruling by saying:

“It’s just very, very sad for people who are never going to get the money that was taken.

“The FCA says 64 million policies were sold, but we think that’s an underestimate. The vast bulk of people haven’t claimed, and huge numbers of them were mis-sold without knowing, and now they will never get the chance to claim.”

Despite Mr Davies’ comments however, anyone who has a case for PPI mis-selling, or is due a refund of an excessively large PPI commission payment, can still make their case by submitting a complaint prior to August 2019.

It has only been possible to make a PPI complaint related to an excessive commission payment since August of this year. Under the Plevin court ruling, consumers are entitled to compensation if the firm selling the PPI failed to disclose that it received a commission payment that amounted to more than 50% of the insurance premium.

Early signs are that some consumers are receiving four-figure payouts having made Plevin complaints. Plevin payouts are unlikely to be as high as for mis-sold PPI, as only the amount by which the commission exceeded 50% would be refunded here. Some consumers who have been unsuccessful with previous mis-selling complaints have also reported being successful with Plevin complaints.

Meanwhile, consumer financial website Moneysavingexpert.com has reported that one consumer received £143,000 in compensation for mis-sold PPI recently.

The FCA’s publicity campaign regarding the PPI deadline only commenced at the end of August, and as already mentioned, Plevin complaints could only be adjudicated on after this time as well. Yet the FCA is still reporting a significant increase in PPI complaint volumes in its figures for the first six months of 2017, possibly due to the publicity surrounding the likely imposition of a deadline.

Between January and June of this year, firms authorised by the FCA received 1,110,000 complaints about PPI, compared to 934,965 in the first half of 2016, representing a 17.7% increase over 12 months; and 899,051 in the second half of 2016, representing a 22.4% increase over six months.

Total complaints for all products were up from 2.06 million in the first half of 2016 to 3.32 million in the first half of this year. This large increase was to be expected, as the FCA now requires firms to report all complaints, including those that they were able to resolve within three business days.

However, few PPI mis-selling complaints are resolved so quickly, meaning that there really has been a significant increase in the numbers of people complaining about this product.

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.