Question 1

What is Payment Protection Insurance (PPI)?

Accepted Answer

Payment Protection Insurance (PPI) claims today focus on undisclosed commission under section 140A of the Consumer Credit Act 1974, following the Supreme Court in Plevin v Paragon Personal Finance [2014] UKSC 61. The 29 August 2019 FCA mis-selling deadline applied to advised-sale grounds only — Plevin commission claims remain a live cause of action.

Question 2

Who can bring a payment protection insurance (ppi) complaint?

Accepted Answer

Anyone whose PPI policy carried an undisclosed commission greater than around 50% of the premium may have a claim under the unfair-relationship test in section 140A CCA. Limitation runs from the end of the credit relationship.

Question 3

How often does FOS uphold payment protection insurance (ppi) complaints?

Accepted Answer

Of the 31 payment protection insurance (ppi) decisions in this corpus, the Financial Ombudsman Service upheld approximately 71% (22 upheld, 9 not upheld). The uphold rate across all FOS decisions sits in the mid-30s%, so this figure should be read alongside the strength of the individual complaint.

Question 4

What redress is typically awarded?

Accepted Answer

Redress depends on the financial loss caused and is calculated to put the consumer back in the position they would have been in had the breach not occurred — typically a refund of fees or charges, plus 8% simple interest from the date of loss. In the decisions in this corpus the average redress awarded on upheld complaints was approximately £821.

Question 5

How long does the Financial Ombudsman Service take?

Accepted Answer

Investigation typically takes between 6 and 18 months. Cases involving complex evidence or multiple defendants tend toward the longer end. Where the case is straightforward and the bank co-operates, a final decision can be issued in under 6 months.

Payment Protection Insurance (PPI)

Upheld complaints (1)

We Fight Any Claim Ltd

Not-upheld complaints (1)

Lloyds Bank PLC