It is incredible that we are in a situation that anyone who has had a successful claim already in relation to Payment Protection Insurance (PPI) in the past, can now make a further claim for a further refund against the same Lender who agreed to the original PPI refund.
“This is where you have to bear with me, as it does seem like a huge scam, but trust me – it is not!”
It all centres around a Court Ruling at the end of 2014, when a client of a Bank “Plevin” who had previously obtained a refund for the Payment Protection Insurance mis-sale and interest (who had already received a full refund against her Lender, Paragon). However, this individual also established, at that time, that a commission had been paid by Paragon to a third party. This commission was not detailed in any of the agreements or terms and conditions of the facility, and was not discussed at the meeting in order to obtain the borrowing. In fact - at no time was the commission discussed or detailed to the client at all with regard to the facility. The client (through her legal team) argued that this was a breach of the Consumer Credit Act and her rights, arguing the fact that the policy, which itself had been mis-sold, should not have been applied to the account as the commission that was paid was not detailed, and therefore her rights were in breach.
There is an argument that anybody who has had commission paid and which has not been detailed could in fact question the validity under the Consumer Credit Act and the agreement in its entirety. However, in this particular instance, we look purely at the commission that was paid.
Of course, nobody knows whether they paid commission. The Financial Conduct Authority (FCA) has now conducted a study into this, and issued guidance to financial firms on how to deal with this matter. If you have had a refund, we can now look on your behalf to consider obtaining a further refund in relation to the commission, if paid, that was not detailed to you. It is surprising, but the vast majority of Lenders actually did pay commission through credit cards, loans, mortgages and hire purchase (HP).
It does not make any difference what type of facility it is, and it does not make any difference what type of Lender it is. It is therefore worthwhile checking. The pre-requisite of making any claim in relation to this (and of course you must be aware that the claim will not be as great as the one that you have already received because it will only be a proportion of the premium that you had paid which would have been paid as commission) however it will be something, and could run certainly into many hundreds of pounds, and in some circumstances into thousands of pounds. Needless to say, regardless of the amount, there is potentially money due to come back to you.
We represent clients in two different fashions with regards to this. The first is by establishing if the commission was paid against the PPI premium. If it was paid, we would look to obtain a refund which would not only deal with the commission paid, or a percentage of what was paid over and above what is acceptable for a commission payment, but also the compensatory interest and accumulated interest over the period of time since the commission was paid.
Again, you may be looking at this sceptically and thinking - how can you make a claim against something you have already made a claim upon?
We have looked at this type of claim for around 8 to 9 months now, and even now we are still slightly bemused. However, “the Law is the Law” and we are already seeing refunds in relation to our clients’ claims that we are obtaining on their behalf by acting in this way for them, in cases where they have already been successful in obtaining a refund in relation to the mis-sold PPI in the first place.