Update on PPI claims

On 2 August 2016, the FCA published a Feedback Statement on rules and guidance in relation to PPI and Plevin complaints.

The following are headline points (and subject to further consultation):

  • Two year deadline for making a new PPI complaint;
  • An FCA-led consumer communications campaign notifying of the deadline, including a note on ‘undisclosed commissions’ in relation to Plevin;
  • So far as the campaign is concerned, whilst the FCA will not advise consumers against using a CMC, they will reiterate their view that most consumers can make PPI complaints effectively by themselves.       
  • The ‘undisclosed commission’ element of the FCA proposals only relates to PPI and does not set a precedent for any other products sold 
  • The FCA will not distinguish between regular and single premium PPI, both are caught.
  • The new rules will apply to rolling credit products taken out pre-2007.

Plevin Complaints

  • The proposed 50% ‘tipping point’ will apply regarding the amount of commission element paid.


  • Interest will apply at 8% simple interest to redress payments, but firms can pay a lower rate if they can justify it in the circumstances of a particular case.

Further Consultation

  • There will be a further consultation for 10 weeks on the whole package as amended.

Anticipated Timetable

  • The final rules and guidance are to be issued by end-December 2016;
  • Effective end of March 2017;
  • The rule setting the PPI complaints’ deadline would come into force by the end of June 2017, with the communications campaign starting at the same time to advise consumers of the impending deadline for making a complaint;
  • Complaints' deadline end of June 2019.

Author: Ritchie Irvine

This information is intended as a general discussion surrounding the topics covered and is for guidance purposes only. It does not constitute legal advice and should not be regarded as a substitute for taking legal advice. DWF is not responsible for any activity undertaken based on this information.

Ritchie Irvine


I am a banking and finance litigation specialist and act for most of the major clearing banks and finance houses on a broad range of banking and asset finance disputes.