Undisclosed Commissions Claims
If you previous PPI complaint was rejected, or you didn’t make a claim, you could still be due compensation for undisclosed or unfair commissions.
Undisclosed Commissions Claims
Most consumers will already be aware of mis-sold Payment Protection Insurance (PPI). Many PPI policies were added to loans and credit cards on the basis of misleading advice, or even without the customer’s knowledge.
After the extent of the scandal was revealed, millions of customers realised that they might have been paying for an insurance policy that they couldn’t use or didn’t know about and complained to their PPI providers.
As a result, UK banks and insurers paid out over £36 billion in compensation by 29th August 2019, the Financial Conduct Authority’s deadline for submitting complaints.
Although most new claims against the mis-sale of PPI have ceased since this deadline, in many cases a complaint can still be made about a lesser-known aspect of PPI: the level of commission passed between the PPI brokers and lenders.
Start your Undisclosed Commissions claim
How FDM Solicitors Can Help
Such complaints are often known as “Plevin” claims, which refers to the case of Plevin v Paragon Personal Finance Limited. When taking out her £5,780 PPI policy with Norwich Union, the customer had not been informed that 71.8% of the PPI premiums – £4,150 – had in fact been paid in commissions to the broker and the loan provider, leaving the true cost of the policy at £1,630.
In November 2014, the Supreme Court ruled that this level of commission was “a long way beyond” the point of creating an unfair relationship between the borrower and the lender; and that had the customer been aware of the commissions, she would likely have opted against taking out the policy.
It has since been found that most PPI sales included similarly high levels of commission. In most cases this commission was not disclosed, hugely increasing the cost of the policy without the customer’s knowledge; where that is the case, compensation could be due.
Even if you have already received a so-called “tipping point” offer, in which only a portion of the commissions were refunded, we may be able to help you to recover additional compensation.
At FDM Solicitors we specialise in this area of law, so if your previous PPI claim was rejected, you’ve received a partial refund of commissions or you missed the window to complain about PPI, get in touch with our expert team now to make a claim for undisclosed commissions on a no win, no fee basis.
