PPI Claims : High Commission Levels & PPI

The Payment Protection Insurance (PPI) mis-selling scandal has been in the headlines for some time now and the deadline for customers to put their claims in, 29 August 2019, is looming.

While many customers have had their complaints upheld, many others have not. These customers now need to go back and check their paperwork or go back to their lenders and ask about the level of commission they have been charged on the PPI policy.

Commissions can be defined as a reward paid to a bank or other provider by an insurer 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’ means it was more than half of what you’ve paid for your PPI policy.

What you probably won’t know what percentage of your PPI premium was the commission element of your PPI policy. The commission would have been paid to the bank or broker instead of the full amount going to towards paying for the insurance.

New rules and guidance were published by the FCA in March 2017 outlining how PPI complaints were to be dealt with after a Supreme Court ruling, Plevin v Paragon Personal Finance.

As a result of the Plevin ruling, you may be able put in a complaint about the level of commission paid for a PPI policy which was not disclosed to you at the time of sale. If the level of commission was too high you may be entitled to compensation regardless of whether or not you were mis-sold the PPI.

Plevin Ruling

Read about Plevin v Paragon Personal Finance 2014 where the complainant won her appeal case for mis-sold PPI and high commission in the Supreme Court (the highest appeal court in England).

Doran Decision

Read about Doran v Paragon Personal Finance 2018, a County Court decision there a District Judge awarded the claimants all of their high commission payments back plus interest.

PPI & High Commission Levels – Latest Developments