FCA considers further PPI safeguards following court ruling

FCA considers further PPI safeguards following court ruling

The Financial Conduct Authority is considering whether additional rules and/or guidance are needed to tackle payment protection insurance complaints, following on from a November 2014 Supreme Court ruling.

In January, the regulator announced it would be collecting evidence on PPI trends, using this to assess whether the current approach is continuing to meet its objectives of securing appropriate protection for consumers and enhancing the integrity of the UK’s financial system.

The regulator expects to give its view on current trends in PPI complaints in the summer, “making clear any next steps”.

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However, it is now considering whether additional safeguards are needed, due to the ruling in the November 2014 Supreme Court ruling in Plevin v Paragon Personal Finance.

The court found that a failure to disclose to a client a large commission payment on a single premium PPI policy made the relationship between a lender and borrower unfair under section 140A of the Consumer Credit Act 1974.

The FCA will be engaging with relevant stakeholders in the coming months in respect of this and it expects to announce its views on this, including next steps, at the same time as existing work.