Regulation  

FCA examining PPI rules after court case

FCA examining PPI rules after court case

The FCA has said it is considering whether to introduce additional rules and guidance on payment protection insurance complaints, following a landmark Supreme Court case last year.

The regulator, which announced it would be collecting evidence on current trends in PPI complaints and would set out its views this summer, said it planned to use this evidence to assess whether the current approach was still securing appropriate consumer protection and enhancing the integrity of the UK financial system.

The watchdog expects to give its view on the evidence collected in the summer and make clear any fresh steps.

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This follows the November 2014 Supreme Court case, Plevin v Paragon Personal Finance Ltd, where the court ruled that a failure to disclose a large commission payment on a single premium PPI policy made the relationship between a lender and the borrower unfair under section 140A of the Consumer Credit Act 1974.

Background

Earlier this year, the regulator revealed that in February £361m was paid to customers who complained about the way they were sold PPI – taking the amount paid between then and January 2011 to £18.8bn.

Since January 2011 firms have handled more than 14m PPI consumer complaints.