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What is PPI – Unfair Commission?

If you took out a PPI policy, a percentage of what you paid for your premium may have been commission. This would’ve been payable to the bank or broker, rather than the whole amount going towards paying for your insurance.

‘PPI – Unfair Commission’ is where the commission paid was unfair and you weren’t told about this. The Financial Conduct Authority (FCA) have defined unfair commission as being more than 50% of the cost of the PPI premium.

The Supreme Court made a ruling in 2014 in the case of ‘Plevin’. It stated that an unfair relationship between a customer and lender is created when a commission on a PPI product is unfair and the customer wasn't told the commission rate. Following the ruling, the FCA set out guidelines on how banks should investigate and correct PPI – Unfair Commission.

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