UK: Payment Protection Insurance Complaints - The Road Ahead

The Financial Conduct Authority (FCA) has published its further consultation paper on the future of payment protection insurance (PPI) complaints. CP 16/20 adds further detail to the regulator's plans to bring the ongoing issues raised by the historic sales of PPI to an orderly close, with a final date for making new complaints now estimated for June 2019.

We have been engaged in conversations with clients and industry experts and based on these discussions, we have set out below some of the initial considerations for businesses looking to plan for what is expected to be the final three years of PPI complaints operations.


While the FCA plans to keep to a two-year deadline for the bringing of new complaints, the two-year period is now planned to start in June 2017 rather than in 2016. The rules and guidance, however, are scheduled to be finalised by the end of this year. The FCA also intends to launch a campaign designed to raise customer awareness commencing June 2017.

Aligning business operations to prepare for this timescale and ensuring customers are aware of the 2019 deadline will require an ongoing review of current caseloads and close management of new complaints. It is likely that businesses will face a fresh influx of complaints ahead of the deadline. Businesses are likely to see increased complaints activity over the next three years as a result, and careful planning for the impact of this will be needed. The aim will be to handle all complaints in a timely manner within the 8-week rule period to avoid long backlogs by the time the deadline passes. We expect continued focus on 8-week positions throughout the period as any complaints outstanding after August 2019 are likely to attract negative comment from customers and the regulator.

Robust preparation will factor in an additional review period following the conclusion of the time bar in June 2019. We anticipate businesses receiving a number of complaints based on "exceptional circumstances" beyond this time and complainants progressing their claim to the Financial Ombudsman Service should be considered.

"Unfair" commission – the impact of Plevin

In its previous consultation paper, the FCA proposed a new "two step" process for the resolution of complaints which raise complaints based on an "unfair relationship" caused by the non-disclosure of agent commission for the sale of PPI, in addition to a mis-sale based complaint. This is based on the Supreme Court judgement in Plevin v Paragon Personal Finance. The FCA is now consulting on further guidance for how businesses should treat complainants asking for the refund of "excess" commission payments. The FCA has indicated that a level of 50% is likely to be used as the "tipping point" for unfairness.

With previously unsuccessful complainants permitted to raise a new complaint based on Plevin, renewed complaint activity is likely to take place as a result of the ruling. We understand that businesses are already placing these complaints on hold pending final publication of the new rules, and actively managing complaints as they arrive to ensure they have a full overview of their PPI complaint portfolio.

The FCA has also included additional information on its proposed guidance for calculation of redress, assisting businesses currently developing their calculator solutions. Alongside the new rules and guidance due later this year, the FCA has signalled an intention to publish more worked examples of PPI redress for Plevin complaints in different scenarios to assist businesses and complainants.

Businesses are considering how to operationalise this guidance as well as preparing access to their historic commission records for the purpose of handling Plevin complaints.

Claims management companies and regulatory change

The consultation paper makes clear that the FCA expects claims management companies (CMCs) to ensure customers are aware of their rights to make fresh complaints, and to seek updated authorisations from their customers to pursue any new issues. While the FCA cannot require compliance with its expectations before it takes over from the Ministry of Justice as the regulator of CMCs, this is an early sign of some of the FCA's intentions. We expect further updates on the FCA's role in the regulation of CMCs in 2017.

It is likely that a combination of regulatory changes and an impending PPI deadline will see increased activity in the CMC marketplace. A number of businesses are adopting a proactive approach when interacting with CMCs which can help identify and tackle issues at an early stage.

Summary and next steps

With the consultation ending in October and the next update expected in early 2017, the FCA has signalled an intention to bring the story of PPI complaints to a conclusion. However, mindful of recent changes heralded by the likes of Plevin, businesses across the spectrum from large high street banks to brokers and referrers of past PPI sales will be looking to map out their complaints handling strategy which allows for flexibility, fairness and resilience over the next three years.

Businesses with a strong Customer Relationship Management (CRM) function will find themselves well-placed to manage the transition, with robust data and complaints management tools ensuring they are prepared to help customers through the changes.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.