Financial Conduct Authority clarifies fairer treatment of regular premium PPI complaints and proposes new mailing requirementsThursday, November 8, 2018
Thousands of consumers who had their Payment Protection Insurance (PPI) claims previously rejected by the banks could be invited to try again under proposed new guidance from the Financial Conduct Authority (FCA).
The FCA is consulting on whether firms should be required to contact consumers who made unsuccessful PPI complaints and invite them to start a new claim.
The proposed rules will mean that firms that did not disclose commission payments included in PPI policies will need to write to around 150,000 rejected PPI customers and inform them that they have until the 29 August 2019 deadline to make a new complaint.
In March 2017, the FCA made rules and guidance in relation to the Supreme Court judgment in Plevin which says that a lender’s failure to disclose at point of sale a large commission payable out of the PPI premium can make the lender’s relationship with the consumer unfair under the Consumer Credit Act. The new guidance deals with an uncertainty that has emerged since this framework was released.
Since 2011, the banks have paid out over £30 million in redress and this proposal could see them landed with an even bigger bill.
The consultation will last until 7 December 2018 with a final report due to be released in January 2019. If the new rules are agreed, firms will be required to contact their customers by 29 April 2019.
The deadline is fast approaching
The FCA has set a deadline of 29 August 2019 for all PPI complaints, including those that fall under the Plevin ruling. If you have had a complaint rejected, we can help you try again. Fill out the short form on our website or call us on 0800 954 0817 to get started today.