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29 Mar 18

The Commission Game Changer


With the deadline for claiming back Payment Protection Insurance (PPI) just over a year away, the Financial Conduct Authority (FCA) have seen a significant increase in PPI payoutsi and enquiries following their TV campaign starring Arnold Schwarzenegger, which was launched 29 August 2017ii, being a fundamental factor.

Following on from this spike in growth, legal action by the Supreme Court back in 2014 means that customers who have had their PPI complaints rejected now have another chance to claim.

If a lender took more than 50%iii of the payable premium on commission without disclosing it, compensation may be due. The case was brought to the Supreme Court’s attention by Susan Plevin. Having been turned down for compensation, she lodged another complaint on the grounds that commission paid to the lender had not been disclosed. The court agreed in her favour. This has paved the way for many others to claim back unfair commission and has led to many old cases being re-opened and new claims made based on commission arrangements alone.

But there is a catch, the PPI compensation is decided based on the cost of the policy itself and not the commission. So if a lender took a commission of 50%, then the compensation payment received could be no more than half the amount originally paid.

Anyone who has had a claim turned down by a lender can also make an appeal for the whole amount.


iMonthly PPI refunds and compensation – 09.03.2018

iiFCA Advert Campaign – 29.08.2017

iiiThe Financial Conduct Authority’s Statement on Payment Protection Insurance (PPI) – 18.08.2017