The UK banking industry is in tatters as they may be paying for a higher bill for PPI mis selling due to a new ruling. The Susan Plevin v Paragon Personal Finance had created a landmark case for PPI claims.
The Supreme Court had decided that Susan Plevin can receive her refund despite finding use for payment protection insurance because her lender and broker had received very high commission for selling the insurance policy.
The lack of knowing commissions had led to a “sufficiently extreme inequality of knowledge and understanding.
However, the UK supreme court has not yet disclosed the amunt threshold to consider a commission “very high”
The Financial Conduct Authority said that any changes in light of the Plevin case will be part of their review. The watchdog is currently considering changing or adding new PPI claims rules to introduce the Plevin landmark for PPI claims.
This may introduce a larger surge in PPI complaints. It would also mean a higher PPI claims bill for UK banks.