Commission Only (Plevin) Complaints
On 2 March 2017, the FCA published a policy statement (PS17/3) introducing, among other things, new rules and guidance concerning the handling of PPI complaints in light of the Supreme Court’s decision in Plevin v Paragon Personal Finance Ltd (Plevin). The Plevin judgment concerned a claim under s.140A of the Consumer Credit Act 1974 about the non-disclosure by a lender of the level of commission on a PPI contract.
This provided that, as a result of Plevin, you may now be able to complain about the level of commission from your PPI sale that was not made clear to you when you purchased it. The impact of this is that you may be entitled to compensation, in relation to this commission, even if you were not mis-sold PPI.
Who can make a Commission Only (Plevin) complaint?
If you have not previously complained about PPI you should consider:
· If you want to make a complaint about the mis-sale of your PPI Policy. As part of this complaint we will consider undisclosed commission even if you don’t mention it. (PPI Mis-sale Complaint form)
· You can choose to make a complaint only about commission however this will not consider any potential PPI mis-sale. (Commission Only (Plevin) complaint form)
If you have already complained about PPI you should consider;
· If your PPI complaint was rejected you may be able to make a new complaint about undisclosed commission.
· If your complaint was successful, and you received some or all of your money back, you will not receive further compensation for a complaint about undisclosed commission as there is no remaining loss that you need to be compensated for.
· If you complained about PPI after late 2015, you should already have been informed in writing whether we will consider undisclosed high commission as part of your complaint. (Please check the decision issues if you are unsure)
These rules only apply to PPI policies that covered repayments on credit agreements (such as Loans, Mortgages, Overdrafts and Credit Cards) where money was owed, or potentially owed, on or after 6 April 2008. If PPI was sold to you on a borrowing that you paid off in full before 6 April 2008, you cannot complain about undisclosed high commission.
If you had PPI on a Credit Card, note that you may still be able to complain about undisclosed high commission even if you stopped using your credit card before 6 April 2008.