FCA finalise plans to place a deadline on PPI complaints

[Legal Beagles]

The Financial Conduct Authority has today confirmed that it will introduce a deadline for making new payment protection insurance (PPI) complaints.

https://www.fca.org.uk/news/press-re...ppi-complaints

[EXC]

Re: FCA finalise plans to place a deadline on PPI complaints

Soooo the deadline for making PPI complaints is 29 August 2019.

On Plevin:

The FCA has also made final rules and guidance related to how firms should handle complaints in light of the Supreme Court judgment in Plevin v Paragon Personal Finance Ltd (Plevin). The Plevin decision means that consumers may have new grounds to complain about PPI regarding the amount of money that the providers received for the sale if the failure to disclose that commission made the relationship unfair.

As proposed, the FCA’s approach includes a 50% commission ‘tipping point’ at which firms should presume, for handling PPI complaints, that the failure to disclose commission gave rise to an unfair relationship, and that profit share should be included in firms’ calculation of commission. Redress will be calculated as the excess commission over the 50% tipping point.

The FCA will also require all firms to write to previously rejected complainants who are eligible to complain in light of Plevin in order to explain the new basis for complaining to them.

It's disappointing that the FCA haven't required firms to write to customers who haven't complained telling them that their PPI policies were subject to 50%+ commission as in most cases the firm will know and the customer wouldn't.