If the Financial Conduct Authority (FCA) has its way, previously rejected payment protection insurance (PPI) complaints get another shot at compensation.
The regulator, which has been doubling down on its efforts to get consumers to file their claims before next year’s deadline, has rolled out a one-month consultation on new rules it plans to implement.
The proposal? To require firms to write to around 150,000 specific PPI complainants whom they originally turned down to let them know they can make a new complaint about non-disclosure of commission until August 29.
“The proposed mailings will help certain consumers who have previously complained about regular premium PPI but been rejected to engage with our campaign and consider whether they want to make a new complaint about undisclosed commission before the deadline,” said the FCA’s Jonathan Davidson, executive director of supervision – retail and authorisations.
Following the consultation, which closes on December 07, the watchdog will aim to issue a policy statement with finalised rules in late January 2019 if it decides to proceed with the mailing requirement.
Meanwhile the FCA has also issued final guidance clarifying that companies should assess commission disclosures not only at the point of sale but on an ongoing basis, and that this should be assessed under the regulator’s general complaint handling rule.
The clarification stems from a Supreme Court judgment in Plevin, which says the failure to disclose at point of sale that a large commission was payable out of the PPI premium can make the lender-client relationship unfair under the Consumer Credit Act.
“The final guidance resolves an area of uncertainty and will ensure fair and consistent outcomes for regular premium PPI complaints,” said Davidson, who believes the guidance, as well as the mailing requirement, support the progress being made “toward bringing the PPI issue to an orderly conclusion in a way that secures appropriate protection for consumers.”
