Undisclosed/high commission charges (Plevin v Paragon Personal Finance Ltd)
The Financial Conduct Authority (FCA) has been assessing the industry approach to PPI mis-selling complaints. In November 2014, the Supreme Court ruled in Plevin v Paragon Personal Finance Ltd that a failure to disclose to a client a large commission payment on a single premium PPI policy made the relationship between a lender and the borrower unfair (under section 140A of the Consumer Credit Act 1974).
In March 2017, the FCA published their final rules and guidance in PS17/3 'Payment protection insurance complaints: feedback on CP16/20 and final rules and guidance'. The new rules come into effect on 29 August 2017. Until then, firms will still be able to explain to complainants that they cannot yet provide a final response for complaints that could be affected. We will update this website page nearer this time, including details of how to complain if you believe that information about commission payments we received were unfairly withheld from you.
A link to the FCA final rules and guidance can be found here:
Please note - if you have already received a full refund of your PPI premiums for being mis-sold a PPI policy by Northern Rock, then no further compensation would be due as a result of any commission that had been charged, so you do not need to contact us again.