New PPI Claims; Deadline of August 2019 means it really is ACT NOW. We understand about 48 million policies were sold and to date about 12 million complaints have been made. The average compensation is about £2,500 (don’t believe what the ads say) and at a fee of 25% (excluding VAT) a fee of £625 can be taken. There will be a significant public awareness campaign, especially as the deadline draws near.
Reviewing PPI Claims; A recent decision at the Supreme Court (Plevin v Paragon Personal Finance), which found that non disclosure of commission led to an unfair relationship between bank and borrower. This means that some rejected complaints can now be won.
The Financial Conduct Authority (FCA) are arranging for some clients to receive compensation of any commission paid over 50% as they deem that anything over that was excessive. A simple calculation shows how much better off the client will be, using law rather than FCA proposal.
PPI Premium £2,500, commission taken at 70% ie £1,750. The FCA proposes to refund anything over 50%, ie 20% in this instance or £500 will be returned. Solicitors using the Supreme Court case to have the whole PPI premium returned plus interest. Even ignoring interest this would leave the client better off as £2,500 gross or £1,850 need to fees would be returned to the customer rather than £500.
The FCA has asked banks to write to customers and this is imminent. Anyone who gets one of these letters should get in touch with us immediately.
We have also found that in around 20% of instances, customers who have made previous PPI claims can obtain more by having their claim reviewed by our solicitors. Therefore approximately 20% of 12 million claims made would have a positive outcome if reviewed. In addition as legal requests for information have more authority, about 10% of customers who were told hey had no PPI actually did!