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Lenders using loophole to turn down store card PPI claims

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We are working with over 800 clients who could be owed millions in store card PPI claims. However, lenders have found a loophole to avoid paying out for the mis-sold product.

Store card PPI

From the 1980’s onwards, consumers were sold store card PPI when they took out store-branded credit cards. Many were unaware that they were sold the product. Others were told that they needed the product, even if it wasn’t suitable for them.

However, lenders are using a loophole to leave consumers out of pocket. Lenders are able to reject complaints regarding store cards from before 6th April 2007. This is due to store cards being a form of restricted credit.

Because the PPI claims are related to store credit, our clients could have been mis-sold £1.6m of the insurance product. They may not be able to retrieve this money.

Our 800 clients have an average store card PPI claim size of £2,000. The biggest lender involved is Santander. The bank manages most store cards, including Harrods, Asda and House of Fraser.


Following a landmark ruling, our clients now have a chance to reclaim mis-sold store card PPI. A case called Plevin allows borrowers to complain about the level of commission taken by the lender on financial products.

The Financial Conduct Authority (FCA) stated that more than 50 percent commission amounts to an Unfair Relationship. Therefore, the lender must compensate the borrower.

Another landmark case, Doran v Paragon, may have a huge impact on the way PPI claims are handled. When a high level of commission is charged, lenders usually return the amount over the 50 percent. For example, if a lender charged 75 percent commission, they would have to repay 25 percent.

However, in the Doran case, the judge ruled that the entire commission be repaid to the borrower. This could mean that lenders will have to pay out millions more than expected.

If you were mis-sold store card PPI at an unfair level of commission, get in touch. Our team of expert litigators can offer support and advice.