FCA clarifies fairer treatment of regular premium PPI complaints


fca ppi

The Financial Conduct Authority (FCA) has today issued a consultation paper on new guidance about the handling of certain regular premium payment protection insurance (PPI) complaints.

In March 2017 the FCA has made rules in relation to the Supreme Court judgment in Plevin. That judgment and the rules say that a lenders failure to disclose at point of sale a large commission payable out of the PPI premium can make the lenders relationship with the consumer unfair under the Consumer Credit Act.

The FCAs proposed guidance deals with an uncertainty that has emerged since the rules were made. The guidance clarifies that firms should assess commission disclosures not only at the point of sale but on an on-going basis, and that this should be assessed under our general complaint handling rule.

Jonathan Davidson
Jonathan Davidson

Jonathan Davidson, Executive Director of Supervision Retail and Authorisations at the FCA said:

This consultation provides guidance on how to ensure fair and consistent outcomes for regular premium PPI complaints. It supports our aim of bringing the PPI issue to an orderly conclusion in a way that secures appropriate protection for consumers and enhances the integrity of the UK financial system.

The consultation closes on 4 September2018 and FCA will consider the feedback received.

If the FCA decide to proceed, it will issue a policy statement with finalised guidance in late autumn 2018, with an immediate implementation date.

What should consumers do?

Consumers who previously made a complaint about regular premium PPI and had it rejected will be able to make a new complaint to their lender.

Consumers should consider and decide whether they want to make a complaint before the 29 August 2019 deadline.

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FCA clarifies fairer treatment of regular premium PPI complaints

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