What is Payment Protection Insurance (PPI) and did I have it?
Payment Protection Insurance is an insurance policy that you might have had on a loan with us.
Can I cancel my PPI policy?
Yes, if you still have an active PPI policy, you can cancel it.
What should I do if I believe that I was mis-sold my PPI policy?
If you believe that you were mis-sold your PPI policy you can make a complaint.
What is non-disclosure of commission?
When a lender or other provider sold a PPI policy, the PPI provider would pay them 'commission' for arranging or making the sale. The money for this commission would come out of the premiums that were made for the PPI policy.
Since the new rules were introduced on 29th August 2017 by the Financial Conduct Authority (FCA), all firms involved in the sale of PPI have to introduce new measures. These measures were introduced after the Plevin Supreme Court Case.
The Supreme Court ruled that a failure to disclose commission to a client, where the commission exceeded 50% of the value of the PPI premium(s) paid or payable, would make the relationship between the lender and the borrower unfair under the Consumer Credit Act 1974.
How do I make a complaint about non-disclosure of commission?
You can make a complaint about the non-disclosure of commission and profit share in the same way you would raise a mis-selling complaint with us.
What happens if I complain?
When you contact us, we will write to you to confirm receipt and will consider your complaint. We will assess whether the new rules and guidance apply to your complaint, how much commission and profit share was paid on your policy, whether you were told about it, and if you should receive any money back.
We will aim to review your complaint within 8 weeks and then write to you explaining our decision, including offering some money back if that's due.
How much am I likely to receive?
If you are complaining about the mis-selling of your policy, this will first depend on whether or not your complaint is successful. Any compensation paid to you will also depend on a few factors including how many premiums you paid and at what cost.
When paying out compensation, we always provide a breakdown of the compensation we are providing for your reference and understanding. If you are making a complaint regarding commission and profit share, the amount of money you're due can vary widely. It depends on the type of PPI you have, and the amount of commission and profit share.
Will I pay any tax if I receive some money back?
If you receive a PPI refund then you should receive 8% interest on top for every year that you held the PPI policy. The Society is required to deduct 20% Income Tax from this 8% interest payment. However, you may be eligible for a refund which, if applicable, you should seek to recover direct from HMRC. Further information can be found by visiting HMRC's website at HM Revenue & Customs - GOV.UK or contacting HMRC on 0843 903 3088.
I had a personal loan with Leeds Building Society. Did I have PPI?
Leeds Building Society previously provided personal loans that were sold and/or administered by Ikano bank. If you took out a personal loan with us during this time, you might have also taken out a PPI policy. If you believe that you were mis-sold your policy, you can make a complaint with us.
I have already complained to you about my PPI policy, can I complain again?
If you have already made a complaint and we did not agree that your policy was mis-sold, you can still make a new complaint about non-disclosure of commission.
This is because at the time you took out the policy we didn't make you aware of the commission and profit share we expected to receive, and this may have amounted to over half of the PPI premium(s) you've paid. This follows a Supreme Court decision and guidance for financial firms from our regulator the Financial Conduct Authority (FCA).
Can I still complain if I've made successful claims on my PPI policy before?
Yes, you can still complain, even if you've previously made a successful claim on your PPI policy before.
Is there a time limit on when I can complain?
Yes. You have until 29th August 2019 to complain about your PPI policy. Any complaints we receive after this date may not be considered.
Do I have to use a Claims Management Company (CMC) to make a complaint?
No, you don't have to use a CMC to complain to us. If you do decide to use a CMC, then be aware that you may be charged a fee for their services. Also, make sure you double check they are properly authorised by the Claims Management Regulator. If you're using a Solicitor, you can check online to see if they're authorised. If you're using a Scottish solicitor, the Law Society of Scotland can tell you if they're authorised.
What if I was declared bankrupt?
If you are or have been subject to a Bankruptcy Order or Sequestration (in Scotland), you may be under an obligation to pay any refund you receive to your Official Receiver, Insolvency Practiontioner or Trusee (in Scotland).