The Financial Conduct Authority is to review financial firms’ handling of payment protection insurance complaints following a legal ruling last year.

In November 2014 the Supreme Court ruled in Plevin v Paragon Personal Finance Ltd 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 regulator said: “As a result, the FCA is considering whether additional rules and/or guidance are required to deal with the impact of the Plevin decision on complaints about PPI.

“The FCA will be engaging with relevant stakeholders in the coming months in respect of this and it expects to announce its views on this, including next steps, at the same time as existing work.”