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PPI complaints and Plevin – update

Print publication

11/01/2016

In the last issue of Banking Matters, we highlighted the FCA’s consultation proposals for  the handling of Payment Protection Insurance (PPI) complaints generally and for dealing with the so-called ‘Plevin problem’ (that is, the uncertainty following the Supreme Court’s decision [1] that non-disclosure of a significant amount of PPI commission earned by a lender created unfairness in the lender/borrower relationship).

The FCA has now published its consultation and full proposals. The consultation is open until 26 February 2016 and sets out (and asks for views on) proposals for:

  • a new rule that would set a deadline by which consumers would need to make their PPI complaints or else lose their right to have them assessed by firms or by the Financial Ombudsman Service (2 years as originally proposed, likely to come into effect sometime in 2016, after the FCA set out their final rules);
  • an FCA-led communications campaign designed to inform consumers of the deadline;
  • a new fee rule on funding this consumer communications campaign (to be funded by the 18 firms with the most PPI complaints between them);
  • new rules and guidance on the handling of PPI complaints, to include single and regular premium PPI; and
  • the proposed deadline also to apply to PPI complaints falling within the scope of the proposed new rules and guidance on Plevin.

Walker Morris will continue to report on the consultation. In the meantime, if you have any queries in connection with PPI mis-selling or any other regulatory issue, please contact a member of our Banking Litigation team.

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[1] Plevin v Paragon Personal Finance Limited [2014] UKSC 61.

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