DISP App 3.11 Obligation to write letters to certain rejected complainants

1This section applies where:

1. (1)

   a complainant has made a complaint to a firm in relation to its sale of a payment protection contract which covered or purported to cover a credit agreement (this includes partial coverage);

2. (2)

   the complaint was rejected by the firm before 29 August 2017 in that the firm did not offer the complainant the redress they would have been offered had the firm concluded that the complainant would not have bought the payment protection contract they bought; and

3. (3)

   any referral of the complaint to the Financial Ombudsman Service has been concluded and did not result in the firm offering (or being required to pay) the complainant redress on the basis that the complainant would not have bought the payment protection contract they bought.

The firm (or, where applicable, a successor) must as soon as reasonably practicable, and no later than 29 November 2017, send a written communication to the complainant which:

1. (1)

   informs the complainant that, despite having already made a complaint in relation to the sale of a payment protection contract, they can make a further complaint against the CCA lender in relation to a failure to disclose commission;

2. (2)

   makes clear the identity of the CCA lender, where this is known to the seller or can be identified by them following reasonable steps;

3. (3)

   informs the complainant of the 29 August 2019 time limit;

4. (4)

   refers to the availability of relevant further information on the FCA’s website (whose address should be provided) or by contacting the FCA’s PPI contact centre (whose telephone number should be provided); and

5. (5)

   where the firm is also the CCA lender, informs the complainant of its arrangements for handling further complaints about a failure to disclose commission.

The obligation to send a written communication does not apply where, in relation to the relevant payment protection contract the firm, or where appropriate the Financial Ombudsman Service, has previously considered, or indicated to the complainant in writing that it will consider, a complaint on the basis of a failure to disclose profit share and/or commission.