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Landmark PPI case allows post-deadline complaints

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A recent landmark PPI case could open the floodgates, months after the deadline has passed.

Alongside St John’s Buildings barrister Steven McGarry, we helped our client, James Martin-Smith, claim compensation for a mis-sold PPI policy on a loan he took out. His claim related to undisclosed commission, which was in excess of 85 per cent. This commission was paid to his lender after his initial loan had been consolidated into a second loan. Welcome Finance Limited argued that due to limitation, the undisclosed commission in respect of the first loan was time-barred and should not be considered in the complaint.

However, previous landmark decisions Plevin and Doran were both used to argue that these undisclosed commissions resulted in an Unfair Relationship between the claimant and the defendant.

The judge agreed with our argument. It was determined that the Consumer Credit Act unfair relationship provisions allowed claims relating to refinanced agreements, so long as the overall relationship remained alive within the last six years before litigation commenced.

Welcome Finance Limited also argued that FCA (Financial Conduct Authority) guidance should be followed by the court. They warned that if it wasn’t, the floodgates would be opened to further litigation.

Our thoughts on the PPI case

APJ’s Senior Litigation Executive, Darren Fitzsimmons, said: “The ruling is a great victory for our client, Mr James Martin-Smith. The undisclosed commission amount exceeded the tipping point of unfair relationships and the correct decision was made by the court.

“The argument by Welcome Finance Limited to follow the FCA’s rules is a tactic to effectively scare the courts and prevent them from having to pay out to claimants. You cannot take such a broad approach to claims when so many hard-working people have been misled into an unfair relationship. Each claim must be considered on an individual basis, focused solely on the facts related to that case.”

We’re urging all people who believe that they paid a high level of commission on their PPI policy to get in touch. They may be owed thousands of pounds.