MSE News: Court ruling could open door for more PPI claims

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Consumers who bought PPI on loans and credit cards may have a new avenue for demanding compensation after court ruling ...
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Court ruling could open door for more PPI claims

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  • magpiecottage
    magpiecottage Posts: 9,241 Forumite
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    The circumstances surrounding this case seem to be very specific - and there is nothign to suggest FOS would not have reached the same conclusion.
  • Nasqueron
    Nasqueron Posts: 8,998 Forumite
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    Anticipating millions more spam calls and thousands more posts on this forum from people trying to wedge their old claim or rejected claim into this judgement without knowing if it applied
  • dunstonh
    dunstonh Posts: 116,596 Forumite
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    This is a very niche scenario as it requires the use of a third party (broker) who was paid by fee and commission. It will have no impact on bank sold products.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • bazza24bb
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    I think this is really taking the mickey now, OK claim if you were genuinely miss sold something, but if you agreed to buy something it is up to you to check things out. I bought PPI with my first mortgage and it was the best thing I ever did, it helped me out for 2 years when I lost my job until I got another job. When I bought it I read everything and checked it out, as in life all decisions you make are YOUR responsibility.
  • soontobesensible
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    dunstonh wrote: »
    This is a very niche scenario as it requires the use of a third party (broker) who was paid by fee and commission. It will have no impact on bank sold products.

    True! However, for other loans where some ppi has been reclaimed, do you think there is a potential to reopen the claim if a higher rate of commission is identified?
    Thank you
  • dunstonh
    dunstonh Posts: 116,596 Forumite
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    True! However, for other loans where some ppi has been reclaimed, do you think there is a potential to reopen the claim if a higher rate of commission is identified?
    Thank you

    Following the appeal and the FCA publications, we now know more. It was not expected originally on bank products as they do not pay commission. They are own brand. However, it does appear that the banks are going to have to include their own products even though the commission is not explicit. This results in inconsistency across the market place and other FCA decisions. However, it is what it is.

    People who have had their complaints upheld and received redress already will not get any more. That is because 100% of the premium has been refunded. That included the cost of the commission.

    Where complaints were rejected or were switched to comparative redress, there is potential for more if the commission exceeded 50%. Any commission above 50% should be refunded plus interest. That will mostly be on loans with single premium PPI. Some credit cards could be close. Most MPPI will be under.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • soontobesensible
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    Thanks for making this clearer!
  • aniceman
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    I know I can make a claim on my PPI because of the Plevin Case.

    If I had an endowment mortgage in the past that the bank would not payout on and I also had PPI on this endowment mortgage.

    Both the products where sold together at the same time by the same person.



    My question is
    ===========

    Can I make a new claim now on the endowment mortgage policy because of the Plevin Case.
  • dunstonh
    dunstonh Posts: 116,596 Forumite
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    aniceman wrote: »
    I know I can make a claim on my PPI because of the Plevin Case.

    If I had an endowment mortgage in the past that the bank would not payout on and I also had PPI on this endowment mortgage.

    Both the products where sold together at the same time by the same person.



    My question is
    ===========

    Can I make a new claim now on the endowment mortgage policy because of the Plevin Case.

    Commission on endowments was way below the level of PPI relative to the premiums paid. It was not in excess of 50% of each premium.

    Also, Plevin applied because of the link to borrowing. Endowments were standalone and did not increase the debt and were not factored under the consumer credit act.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • adam_thedon
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    Plevin vs paragon is slowly blowing up and is going to cause a lot of remediation for the banks (work for barclays so know this)
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