Payment Protection Insurance (PPI)
Undisclosed commission (Plevin)
On 2 March 2017, the Financial Conduct Authority (FCA) released a policy statement (PS17/3) announcing new rules and guidance about the handling of Payment Protection Insurance (PPI) complaints.
The new rules will be in effect from 29 August 2017. You can now complain if you believe your financial provider earned a high level of commission from the sale of PPI, but didn’t tell you about that at the time. Typically, a high level of commission is considered to be at least 50% of the total premium paid.
If you’ve previously had a PPI mis-sale complaint upheld in your favour, the refund you received will have included any commission, which means you’re not due any further compensation and there’s no further action to take.
If you’ve previously had a PPI mis-sale complaint rejected and you’re impacted by undisclosed commission (Plevin), we’ll contact you by the end of 2017. That also goes for undisclosed commission complaints that were put on hold while we’ve been waiting for rules and guidance from the FCA.
Loans.co.uk brokered loans
If Loans.co.uk acted on your behalf as a broker, it’s important to know that the unfair relationship provisions of the Consumer Credit Act do not apply to Loans.co.uk. That’s because those provisions only exist between the borrower (you), and the lender (the company who lent you the money).
You can still make a complaint about unfair relationships caused by undisclosed commissions (Plevin), however your lender will need to look into that for you.
If you’ve previously had a PPI mis-sale complaint with Loans.co.uk upheld in your favour, the refund you received will have included any commission, which means you’re not due any further compensation and there’s no further action to take.