FCA Calls For Further Evaluation of Plevin v Paragon and Feedback for PPI Complaints

August 30, 2016
by admin in PPI News

According to the Financial Conduct Authority, overall, the package of previous proposals would be taken forward including the re-scheduled PPI deadline on June 2019.

The statement comes in its issued feedback statement and consultation about payment protection insurance.

The FCA also advised changes to the proposed PPI rules and guidance on handling PPI complaints. The FCA heavily considers the decision of the Supreme Court during the Plevin v Paragon Personal Finance case.

Susan Plevin, who took out a £32,000 loan from Paragon Personal Finance, purchased from a broker payment protection insurance. As the court deemed the broker’s commission to be ‘quite large’ the broker must disclose the amount to the client.

The lack of a signature or validation of recognition by the consumer of the commission, the 72% of the £5,780 cost of payment protection insurance Susan Plevin paid should be returned to her immediately.

Causes for debate include the actual threshold of mis-sold PPI.

Plevin said her broker did not tell her how much the amount was or which company received the amount. However, she knew the amount of commission paid with her PPI policy.

Mis-sold PPI has a total of £32bn to be repaid to consumers by almost all UK banks.