Mortgage PPI Plevin claim - who should I claim against?

DaveyCrock

In 2003, I took out a mortgage with Alliance and Leicester, who sold me PPI with the mortgage. I have not claimed until now, as I did not feel that the PPI was mis-sold under the original mis-selling criteria. However, I was never advised that A&L would receive commission for selling this insurance, so believe I now have a valid claim under Plevin.

My problem is, to whom should I send my claim? Within 6 months of taking out the mortgage, I was advised by A&L that Pinnacle Insurance were to become the sole underwriters, and that I should make future premium payments to them (which I did). They susbsequently became Cardiff Pinnacle. Meanwhile, A&L were, of course, taken over by Santander.

I have used the Resolver service to raise a claim against Cardiff Pinnacle, as they were the last company to whom I made premium payments, but should I in fact be claiming from Santander rather than Cardiff Pinnacle? If so, having commenced a claim against Cardiff Pinnacle, will I still be able to proceed with a claim against Santander?

dunstonh

However, I was never advised that A&L would receive commission for selling this insurance, so believe I now have a valid claim under Plevin.

Commission disclosure was not required in 2003.

You complain to santander. Who will almost certainly reply stating that the commission was less than the tipping point under Plevin. Very little regular premium PPI falls foul of plevin.

DaveyCrock

dunstonh wrote: »

Commission disclosure was not required in 2003.

You complain to santander. Who will almost certainly reply stating that the commission was less than the tipping point under Plevin. Very little regular premium PPI falls foul of plevin.

Thanks for your reply. However, it seems to be totally contrary to the report on moneysavingexpert.com, which states that the average rate of commission on loan PPI was 67%. Are you saying that loan PPI is different to mortgage PPI?
:think:

dunstonh

However, it seems to be totally contrary to the report on moneysavingexpert.com, which states that the average rate of commission on loan PPI was 67%.

MSE has given an average. Some loan PPi was in the 90% range. Most regular premium PPI (including MPPI) was around 25-35%. Also, loan PPI dominates the volume of PPI sold. So, automatically, the weighting is towards the upper end.

Are you saying that loan PPI is different to mortgage PPI?

yes. Indeed, the FCA did consider excluding regular premium PPI from the Plevin ruling (as can be read in the consultation documents). However, they decided not to complicate matters any more and told firms they should just reject cases when asked.

That was the right position from the FCA as we have seen one regular premium plevin payout that gave about £200 under Plevin. It was just over the 50% tipping point.

However, the vast majority is under the 50% tipping point.

MSE is known for simplifying subjects to keep them short and simple. Accuracy and covering quirks/differences is not its strong point.