Payment Protection Insurance (PPI)
Financial Conduct Authority (FCA) Deadline
If you think you have been mis-sold PPI when you took out your credit card, store card, fixed term credit or personal loan with us or you have been affected by commission in relation to your PPI you can make your complaint directly to us.
The FCA has confirmed that the final date for making PPI complaints is 29 August 2019.
Complaining directly to us is free and simple to do by yourself. You do not need to use a Claims Management Company (CMC) to make your complaint. However if you do want to use a CMC, be aware they may charge a fee for their services, and you should check they are properly authorised.
If you have already complained about PPI and received a full or partial refund we will not consider a complaint about the commission we earned as you have already been compensated.
How do I check if a Claims Management Company or Solicitor is authorised?
You can check if they are authorised by visiting the Claims Management Regulator’s website https://www.gov.uk/government/groups/claims-management-regulator, the Solicitors’ Regulatory Authority website https://www.sra.org.uk/home/home.page, the Law Society of Scotland’s website https://www.lawscot.org.uk/.
What is PPI?
PPI is an optional insurance which provides a sum of money to cover monthly repayments in the event of accident, illness, involuntary redundancy or death.
The Supreme Court ruled in the case of Plevin v Paragon Personal Finance Limited that the failure by the lender to tell the customer about high commissions (typically 50% or over) made the relationship between the lender and the customer unfair under the Consumer Credit Act 1974 . The commission in this case was 72%.
Following the Supreme Court decision and new rules and guidance from the Financial Conduct Authority, you can make a new kind of complaint to us about the sale of your PPI policy.
What is commission?
Commission is the amount of the PPI premium you pay that does not go towards your insurance cover, usually to cover expenses and the selling of the policy to you. It is undisclosed if at the time of its sale to you, you were not told of the amount of the commission payable to us.
Should you make such a complaint we will review your case to assess the level of commission that was contained within your PPI policy when it was sold to you. Within this review a high level of commission will typically be considered to be over 50% of the total premium that you paid.
The review will also assess whether the level of commission was disclosed to you as part of the original sale of the policy, it may be that due to the regulations in place at the time of the sale this was not something that we were required to tell you. Generally we did not tell customers about our commission as we were not required to. If you would like to complain, you should do so before the deadline of 29 August 2019 imposed by the FCA. Should you submit your complaint after this deadline it will not be considered. Submitting your complaint is free and can be done by contacting us directly via our website or by post. You do not need to use a CMC to make your commission complaint. However if you do want to use a CMC, be aware they may charge a fee for their services, and you should check they are properly authorised.
You can make a complaint about commission even if you have a previously rejected complaint regarding the mis-sale of your PPI policy.
What happens when I complain?
When you contact us this will start our complaints handling process and we will write to you to acknowledge receipt of your complaint. Our investigation of your compliant can take up to 8 weeks. During the complaints handling process we will assess your complaint fully and assess whether your policy was mis-sold.
Following the investigation, if we agree that your PPI complaint was mis-sold redress will be calculated and you will receive payment including interest.
If your PPI complaint is rejected we will review the level of commission we received and whether this was deemed to be too high. An assessment will then be made to see if your complaint falls within scope of the relevant complaint handling rules for redress. We will confirm the full outcome of our investigation to you in our final response letter.
How long will it take to process my complaint?
We care about our customers and take complaints seriously. We expect to resolve your complaint within eight weeks, however if we are unable to resolve your complaint within eight weeks we will contact you to provide an update on our investigation. If you have not received a reply from us within eight weeks of raising your complaint, you may have the right to refer your case to the Financial Ombudsman Service (FOS) if the date of your policy falls within their jurisdiction.
The FCA has published details of the timescales for the handling of complaints relating to PPI, these are available on the FCA website.
Existing PPI/ Commission Claims
If you have already made a complaint about your PPI you don’t need to do anything we will be in touch.
New PPI/Commission Claims
To check if you held a PPI policy; please complete our online form (see below) checking any available documentation as outlined to obtain details of your PPI policy. This will help us progress your complaint.
Will I pay any tax if I receive some money back?
Any money back will include an amount of interest. You may have to pay tax on some of the additional interest paid to you, but this will be only a small part of any payment made to you. You do not have to pay tax on most of the payment.
The quickest method to register your complaint is by completing our online form provided below
Alternatively you can write to us at:
Creation Financial Services Limited
When writing to us please make sure that you provide us with all the information required for the online form (as below)