THE LEGAL LANDSCAPE FOR PPI
Key legal decisions have fundamentally altered the opportunities for consumers to bring claims to recover their PPI. The judgement in Plevin vs Paragon Personal Finance (2014) allows our customers to bring an unfair relationship claim based on non-disclosure of commissions. Other recent cases have upheld this judgement and previously rejected PPI complaints can now be re-opened on fresh grounds.
The Financial Conduct Authority (FCA) has confirmed that the final deadline for making a new PPI complaint will be 29 August 2019. The FCA has also issued rules and guidance in handling complaints in light of Plevin. The FCA’s approach confirms a 50% commission ‘tipping point’ at which firms should presume that the failure to disclose commission gave rise to an unfair relationship. They state that the profit share should be included in firms’ calculation of commission and redress will be calculated as the excess commission over the 50% tipping point.
The opportunities to re-examine old PPI cases fall into three categories:
Cases rejected after proof of PPI can now be re-opened on fresh grounds of complaint under the unfair provisions of the Consumer credit act 1974. 42% of all personal loans and credit cards fall within the scope of CCA. Over 10% of previously rejected cases have been found by CLL to have successful Plevin claims.
CASES REJECTED AS HAVING NO PPI
These can be re-opened as banks are forced to search and investigate all their clients’ products. By way of example, ClaimLion Law has successfully forced Santander to reopen all their old cases resulting in a significant number of new claims.
PREVIOUSLY WON CASES
Due to new legal protocols and greater lender search capabilities, over 7% of all historical cases can be reprocessed.
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