CP18/33: Regular premium PPI complaints and recurring non-disclosure of commission – feedback on CP18/18, final guidance, and consultation on proposed mailing requirements

Open consultation: CP18/33
Consultation closes
Policy Statement
Q1 2019

This paper publishes guidance that clarifies our expectations about the handling of certain regular premium PPI complaints. It also proposes new rules that would require firms (CCA lenders, and PPI sellers) to write to certain consumers whose previous PPI complaints they had rejected, to tell them they can make a new complaint about non-disclosure of commission, and remind them of our 29 August 2019 deadline for complaining.

Read CP18/33 (PDF)

In March 2017, we made rules and guidance 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 new guidance deals with an uncertainty that has emerged since we made our Plevin framework. The guidance clarifies that firms should assess PPI 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).

The guidance also explains that it may often be reasonable for firms handling PPI complaints involving ongoing non-disclosure of commission to draw from our existing rules and guidance on handling PPI complaints in light of Plevin.

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

The proposed mailing requirements would help previously rejected complainants who may have disengaged from the PPI issue and our campaign, but who can make a new complaint about undisclosed commission, to consider doing so before the deadline.

Who this applies to

The guidance will primarily affect firms that sold regular premium PPI and/or provided credit agreements (including restricted credit) which this PPI covered. The proposed mailing requirements will affect these firms, but also those that sold single premium PPI and/or provided credit agreements this PPI covered.

This consultation will be of interest to:

  • consumers who were sold PPI or may have been, in particular regular premium PPI, including where it covered restricted credit, and was sold before 6 April 2007
  • consumer organisations and claims management companies 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 may be able to make a new complaint to their lender.

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

What you need to do

Please send us your comments by 7 December 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 aim to issue a policy statement by the end of January 2019, with an immediate implementation date.