The Financial Conduct Authority (FCA) publishes monthly PPI payout figures. Even though this can give us a good idea of how much compensation has been paid out to the UK public, it fails to give us an idea of how many people’s claims have been rejected.
If you do file a claim for PPI then there is a small chance that the claim could be rejected, that’s just the truth. Many people have filed claims in the past and found out that they’re not actually eligible for compensation for several reasons.
Throughout the next few sections we’re going to discuss a new ruling that could make you eligible for compensation if you have had a rejected claim in the past.
A case that took place last year from the months of June to November, has lead to the possibility of new rulings being made from the FCA. The case, Plevin v Paragon Personal Finance Limited, is different from many other cases because the policy was sold through a broker. This meant hefty commission fees, that of course, were left undisclosed. This was a clear breach of the Consumer Credit Act.
Ultimately, there were many reasons why this policy was considered to be unfairly mis-sold:
1. The broker’s commission was not disclosed to the consumer.
2. The lender failed to properly take into account the suitability of the policy for the consumer: the policy only covered half the term of the loan, the consumer’s employment arrangement already included benefits for sickness and redundancy, the consumer had no dependants, the consumer also already had life insurance.
These two factors above meant that the consumer had a very viable claim, even though many people in the same situation might have been rejected. Think about the Consumer Credit Act when you’re making your claim and pay extra attention if your lender used a broker.
You can find out more about the case, Plevin v Paragon Personal Finance Limited, here: https://www.supremecourt.uk/decided-cases/docs/UKSC_2014_0037_Judgment.pdf
What We Can Expect
The ruling hasn’t been made just yet (at the time of writing), but is expected to be made towards the end of 2015. It will definitely be exciting to see the new changes that are made by the regulatory body, and how these changes affect the UK public.
A large amount of people have been rejected when making their PPI claim, so it’s safe to say that these people might be able to make a claim again after this new ruling has taken place. This could result in the banks and lenders paying out further billions of pounds to the UK public.
It’s Not over Just Yet
Many people assumed that the PPI scandal would have been over by now, or at least almost over. Approximately £20b in compensation has been paid out so far and this number doesn’t look like it’s going to slow down anytime soon. In fact, it looks like we could see an influx of new claims come about with this new ruling.
Even if you have made a claim for PPI in the past and had it rejected, this definitely shouldn’t discourage you from not taking action in the near future. You should always keep yourself updated with the latest PPI news to ensure that you’re made aware of any new rulings or changes to the claiming process.