Regulator may change PPI rules following Paragon case
REGULATOR the Financial Conduct Authority (FCA) may look to toughen up the rules on the sale of payment protection insurance (PPI) following a case involving a division of Solihull financial services group Paragon.
In a statement to the London Stock Exchange this morning, the FCA says it is considering whether additional rules or guidance are required in this area.
In January, the FCA announced that it would be collecting evidence on current trends in complaints on PPI.
Specifically it is studying the case of Plevin v Paragon Personal Finance.
In November 2014, the Supreme Court ruled in the case 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.
The FCA says it will use this evidence to assess whether the current approach is continuing to meet its objectives of securing appropriate protection for consumers and enhancing the integrity of the UK’s financial system.
It will engage with relevant stakeholders in the coming months in respect of this and it expects to announce its views on this, including next steps, in the summer.
