CP18/18: Guidance on regular premium PPI complaints and recurring non-disclosure of commission

Open consultation: CP18/18
04/07/2018
04/07/2018
Consultation closes
04/09/2018
Policy Statement
Q4 2018

This paper consults on new guidance that clarifies our expectations about the handling of certain regular premium payment protection insurance (PPI) complaints. 

Read CP18/18 (PDF)

In March 2017, the FCA made rules in relation to the Supreme Court judgment in Plevin which say that a lender’s failure to disclose at point of sale a large commission payable out of the PPI premium can make the lender’s relationship with the consumer unfair under the Consumer Credit Act.   

The proposed new guidance deals with an uncertainty that has emerged since the rules were made. The guidance clarifies that firms should assess commission disclosures not only at the point of sale but on an on-going basis, and that this should be assessed under our general (non-PPI specific) complaint handling rule (DISP 1.4.1R).

This will help ensure fair and consistent outcomes for regular premium PPI complaints.

Who this applies to

This consultation will primarily affect firms that sold regular premium PPI and/or provided credit agreements (including restricted credit) which PPI covered.

This consultation will be of interest to:

  • consumers who were - or may have been – sold regular premium PPI, including where it covered restricted credit
  • consumer organisations and claims management companies (CMCs) or other paid advocates who take forward complaints about PPI on behalf of consumers or otherwise help them

Consumers who previously made a complaint about regular premium PPI and had it rejected will be able to make a new complaint to their lender.

Consumers should consider and decide whether they want to make a complaint before the 29 August 2019 deadline.

What you need to do

Please send us your comments by 4 September 2018.

Online response form

You can also:

  • email your responses to [email protected]; or
  • write to Julian Watts, Financial Conduct Authority, 12 Endeavour Square, London E20 1JN

Next steps

We will consider your feedback. If we go ahead, we would plan to issue a policy statement with finalised guidance in late autumn 2018, with an immediate implementation date.