Yes it is true. Following a Court ruling by the Supreme Court in November 2014 where a client of Paragon, Mrs Plevin, was successful (through her legal team) in obtaining the agreement of the Supreme Court that the Commission she paid on the Premium to a third party was unfair as it was excessive and therefore it was in breach of her rights under the Consumer Credit Act. What is so significant about this ruling is that she had already had a successful claim in relation to PPI and this amount would be on top of the successful reclaim that had already taken place several years prior to the court ruling.
The Financial Conduct Authority (FCA) have provided some guidance now following a full study of the ruling. They are stepping back from insisting all Firms are to pay redress to their clients automatically, but have stated that the Firms must deal with any complaints that do arise and pay redress where applicable. The FCA have suggested that an excessive Commission figure is an amount above 50% of the Premium. The Industry average is 67% and will therefore mean that a large majority of clients who have successfully recovered PPI will be in for another windfall (albeit smaller than the initial PPI refund itself). However, although their guidance is for an amount over 50% (deemed as excessive) there is a strong possibility that a full refund of Commissions can be achieved, and of course any refund will also attract recovery of interest at the prevailing rate of the facility and compensatory interest on the full amount.
With this new ruling, the Banks are again finding themselves having to pay out considerable sums of money – but this will only be if people make a claim. You should absolutely make a claim if you have already made a successful PPI recovery in the past, as this money was taken from you, and it is your right (if you have paid it) to obtain a refund.
We have been dealing with Banking complaints and disputes now since the late 1990s. We would be delighted to take on any client who has had a successful claim in the past, whether they have obtained this themselves or through a third party claims company. We work purely on a “No Win No Fee” basis and our remit will be to obtain as full a refund as possible, taking into consideration the comments by the FCA, but also where there is ambiguity concerning the potential redress, we would look at a full redress of all Commissions paid. However, this might not be possible – but it would be certainly something that we would seek in the first instance.
Our firm works purely on a “No Win No Fee” basis where our fee, if successful, is 20% plus VAT Therefore if for some reason we are unsuccessful, namely no Commission was paid or the amount of Commission was deemed ultimately to be fair, then there is no fee to pay.