You can complain about the commission a provider earned from the sale of PPI but didn't tell you - even if you had a previous complaint about mis-selling of PPI rejected.
If you had PPI there are 2 reasons you might be eligible to claim back money you’ve paid for the policy:
- PPI was mis-sold to you
- the bank or other provider earned a high level of commission from PPI, but didn’t tell you this - as explained below
Remember: if you haven't complained to your provider by 29 August 2019, you won't be able to claim money back for PPI - so you should make your decision as soon as possible.
Complain that a provider earned a high level of commission but didn't tell you
You can now claim back some of the money you've paid for PPI, if the bank or other provider earned a high level of commission from PPI but didn't tell you.
We introduced new rules that mean banks and other providers have to consider complaints about commission they earned from the sale of PPI. These rules followed a Supreme Court decision in Plevin v Paragon Personal Finance Limited in 2014 (usually called just ‘Plevin’).
A provider was usually paid ‘commission’ by the insurer, as a reward for the sale of PPI. If you had PPI, the money for this commission would come out of the payments you made for the policy.
A ‘high level of commission’ typically means it was more than half of what you’ve paid for your PPI policy.
You do not need to know or explain how much commission was paid for your PPI policy, so if you aren’t sure you might want to complain.
You may be eligible to get back some money if your PPI policy covered repayments on a credit agreement – like a credit card or loan – and you:
- took it out before 6 April 2007, but it was still open on or after 6 April 2008 (even if you had stopped using it)
- took it out on or after 6 April 2007 (whether or not it was still open on or after 6 April 2008)
If your PPI policy covered a mortgage, you may also be eligible to get back some money in certain circumstances, and you should contact your provider for more information.
Rejected complaints about mis-selling of PPI
If you had a previous complaint about mis-selling of PPI rejected, you can still complain about commission earned by a bank or other provider.
You might not have to give all the information about your policy or circumstances again. Contact your provider or check their website, to find out what you need to include in a new complaint.
Providers sent letters between August and December 2017 to people who had a previous complaint about mis-selling of PPI rejected, to explain that they can make a new type of complaint about PPI.
Successful complaints about mis-selling of PPI
If you previously complained about mis-selling of PPI and were refunded some or all of the money you’ve paid, you will not get back more money if you now complain about commission earned from the sale of the same PPI policy.
This is because there is no remaining loss that you need to claim back.
New firm mailings
Until May 2019, some firms are writing to a number of consumers who previously complained about their PPI but were rejected. This is to tell them they can now make a new complaint about undisclosed high commission on their PPI. The letter will include details of how to do so.
If you receive a letter, you should urgently consider your position and make a decision on whether you wish to make a new PPI complaint ahead of the 29 August 2019 deadline.
Please note that not everyone will receive a letter. If you are already thinking about complaining about PPI, you should not wait to receive one before acting.
If you are concerned whether the letter is genuine, you can contact the FCA helpline.
If you complain about mis-selling of PPI, your provider will usually also consider commission they earned, as part of your complaint – even if you don’t mention it.
Complaints made since late 2015
If you’ve complained about mis-selling of PPI since late 2015, your provider should have told you in writing that they would consider the commission they earned, as part of your complaint once the new rules came into force on 29 August 2017.
Check the paperwork from your complaint or contact your provider, if you aren’t sure.