Old PPI Refunds Case May Spark New Influx Of PPI Claims
UK banking giant Santander sent mail to a woman living in Surrey who made PPI claims in 2008 regarding a PPI with her Debenhams card. The woman, confused with the bank’s new letter, received an estimated £25,000 from her claim denied years ago.
Confusing many observers, an explanation about Santander’s move is not due to the FCA’s consultation regarding a mis-sold PPI claims deadline, but more about new PPI rulings.
Santander’s Explanation on Decision on PPI Claims
Santander didn’t really use the new ruling to explain why it denied the Surrey woman’s first PPI claim.
It explained that when it bought the GE Capital Bank in 2009, Santander could not ascertain if GE mis-sold the woman with PPI given it was more than a decade past. However, GE was fined about £600,000 for its PPI mis selling activities.
Santander did recompense the woman with the FCA’s declaration of high-amount undisclosed commission, which was above 50% of the PPI’s selling price.
Plevin V. Paragon Personal Finance
The case of Plevin v. Paragon Personal Finance had Susan Plevin awarded her recompense as her Paragon Personal Finance broker did not disclose the “substantially” high commission he received post-selling.
By rule of the Supreme Court, commission larger than 50 per cent brokers must disclose to avoid creating an unfair sales relationship as mandated by the Consumer Credit Act.