The Financial Conduct Authority
(“FCA“) has ordered firms to write to
some complainants with previously rejected PPI complaints to tell
them they may now be able to make a new complaint about alleged
mis-selling.
In a Policy Statement published last week, the FCA confirmed the
requirements for the fresh mailings obligation. The obligation
arises in light of existing FCA rules whereby firms must not reject
a PPI complaint without considering recurring-non disclosure of
commission payments (“RND“), i.e. both
at point of sale and at various points during the life of the
policy.
The FCA estimates that firms will need to send letters to
between 220,000 and 300,000 consumers before 29 April 2019. The new
rules mean that certain consumers who have had their complaints
rejected in the past may now be able to bring new complaints about
alleged PPI mis-selling.
