Failure to disclose commission is not a grounds for a claim

By | April 6, 2017

Failure to disclose commission is not a grounds for a claim (???)

Lord Justice Tomlinson in the Court of Appeal has ruled that a financial broker selling PPI products is under no obligation to advise a client that the same cover is available more cheaply through another provider. An appeal against the decision to the Supreme Court has been withdrawn.
The withdrawal of the appeal also means that any claim made in the future against a lender or intermediary alleging that PPI was expensive or overly costly at the time of purchase would fail. If a broker fails to disclose the existence or amount of any commission made from the sale of a PPI product “this does not create any unfairness in the relationship between the parties”.
In future, claims that PPI has been missold must show that the product has caused the consumer actual loss and that the borrower has mitigated any losses. It is not expected that claims for misselling on other grounds will be affected.




In 2014, a court ruling held that a lady called Susan Plevin was treated unfairly because she wasn’t told about the very large amount of commission (71.8%) taken from her PPI payment. The Financial Conduct Authority (FCA) has now confirmed  that from 29 August 2017 this can be used as a new reason to claim for compensation.

What is now called the Plevin rules means that if over 50% of your PPI’s cost went as commission to the lender, and that this wasn’t explained to you, you are due back the extra above that amount. For this to count your PPI had to still be active at some point since 2008. This could prove to be a considerable refund for some people.