MSE News: PPI reclaim deadline set for August 2019

dunstonh

MCGONIS wrote: »

I have been waiting many months after my complaint to Santander about a former Debenhams card was refused. They said they would keep the complaint open until the announcement on undisclosed commissions was made and look at again. At least now, it will bring the matter to a close one way or another. (hopefully in my favour!)

Store cards are an unknown. We know MPPI is low and loan PPI is high. There is a thread where one credit card has been looked at in respect of plevin and was in the 30% range. So, no refund payable. My gut feeling is that store cards will be in the same ballpark as credit cards. However, we will soon see. When you find out, please let us know as this is early days on the Plevin side.

Alpine_Star

Nasqueron wrote: »

The Plevin ruling though is only applicable for people who have PPI and were subject to the > 50% commission (as Dunstonh has said, it's not that many

''Typical commission rates are 50 to 80 per cent for PLPPI and CCPPI and 40 to 65 per cent for MPPI.''


http://webarchive.nationalarchives.gov.uk/20140402141250/http://www.competition-commission.org.uk/assets/competitioncommission/docs/pdf/non-inquiry/rep_pub/reports/2009/fulltext/542.pdf

dunstonh

Alpine_Star wrote: »

''Typical commission rates are 50 to 80 per cent for PLPPI and CCPPI and 40 to 65 per cent for MPPI.''


http://webarchive.nationalarchives.gov.uk/20140402141250/http://www.competition-commission.org.uk/assets/competitioncommission/docs/pdf/non-inquiry/rep_pub/reports/2009/fulltext/542.pdf

Never seen an MPPI over 35%. We are already seeing plevin rejections reported on this site where the credit card PPI was in the 30s. It is possible some of the 90s stuff had higher commission as premiums fell significantly in the late 90s. Commissions reductions would have helped in that.

Alpine_Star

dunstonh wrote: »

It is possible some of the 90s stuff had higher commission as premiums fell significantly in the late 90s. Commissions reductions would have helped in that.

So going by your logic commissions must have been even higher in the 90s as the Competition Commission figures I quoted are from their market study based on the year 2007.

dunstonh

Alpine_Star wrote: »

So going by your logic commissions must have been even higher in the 90s as the Competition Commission figures I quoted are from their market study based on the year 2007.

Market studies are often skewed by how they record or report data.

I prefer to go by real world examples as that is what people will be getting their cases reviewed on. There will be some types of the PPI (covering the same thing) where the commission is above and some below.

Alpine_Star

dunstonh wrote: »

Market studies are often skewed by how they record or report data.

PMSL you do make me laugh.

dunstonh

Alpine_Star wrote: »

PMSL you do make me laugh.

How do you explain that fact that the figures are wrong then? Or do you just prefer to make snide remarks?

Agricolae

I'm not sure some sellers of PPI are going to know this far on (for some sales) how much the commission was on their policies. I suspect there will be gaps in their knowledge.

The FCA gave their rationale for not requiring that people be written to. They said they thought it was unlikely to be very effective at prompting consumer complaints. I would recommend reading pages 24-26 of the FCA's recent policy statement which deals with this specific question.

dunstonh

I'm not sure some sellers of PPI are going to know this far on (for some sales) how much the commission was on their policies. I suspect there will be gaps in their knowledge.

You are correct. Especially with bank sold products where commission was not disclosed. However, for IFAs and whole of market mortgage advisers, they would know.