Banks and lenders across the UK were left feeling relieved after the PPI deadline of August 29th 2019, as they looked to put the PPI mis-selling scandal behind them. However, many UK residents are now finding themselves receiving compensation with Plevin PPI cases. What is Plevin, how might it affect you, and are you able to still claim compensation?
Claim Experts explains all you need to know below. If you believe you may have a Plevin case, our panel of solicitors can guide you through your next steps.
What is a Plevin PPI Claim?
A Plevin PPI claim focuses on a Supreme Court case ruling from 12th November 2014, and is centred around hidden commission. Mrs Susan Plevin was sold a PPI policy to cover her secured loan from Paragon Personal Finance Ltd. Through careful reading of the small print, Mrs Levin discovered that an incredible 71.8% of the PPI premiums she had paid under the policy were in actual fact a hidden commission to the lender. Plevin and her legal team put to the court that this was unfair.
The Supreme Court agreed and stated that the sale of the PPI policy was unfair due to:
- Non-disclosure of the commission payment; and
- The percentage of the PPI premium that was paid as commission.
This case then set precedent for future cases. The FCA has since ruled that if anyone else wishes to bring a PPI claim about the high levels of hidden commission within PPI premiums, they could do so.
Are Plevin cases different to mis-sold PPI cases?
Yes, there are a few differences between the two claims. Both are made in relation to the sale of PPI premiums, but a Plevin case does not consider whether the PPI policy was mis-sold. Instead, this type of case focuses on the secret commission that was paid during the sale, that lenders failed to disclose. This hidden commission could be paid to brokers who brought customers to banks.
This distinction actually means that even if it was deemed you were not mis-sold PPI, you may still be eligible to claim compensation. If you have had a PPI claim rejected, you might still be affected by Plevin.
When might have a Plevin PPI mis-selling occurred?
Hidden PPI commissions will have occurred when an agent, introducer, or finance broker sold you a PPI agreement from a bank or lender. If the agent or broker received a fee or commission for bringing you to the bank, and the bank did not inform you of this, that is a hidden, secret, or undisclosed commission. The lender or bank must inform you of ALL of the fees within the PPI transaction.
A general statement that “a commission may be paid in certain circumstances” is not adequate enough either. They must inform you at the point of sale how must the commission was. If they fail to do so it is a form of fraud. Both the bank and the finance broker may be liable for potential claims.
Can I still claim after the PPI Deadline?
Yes. Because the two types of claims are completely different, the 2019 PPI deadline does not apply to Plevin cases. In fact, there is no deadline at all. This is down to the fact that the claim itself is centred around a different area of law – The Consumer Credit Act 1974.
Am I eligible to claim Plevin PPI?
If the below applies to you, you may be eligible to claim:
- Your PPI policy was sold before 6 April 2007 and open after 6 April 2008; or
- Your PPI policy was sold after 6 April 2007 (whether or not it was still open after 6 April 2008);
- You have not previously complained about Mis-sold PPI;
- You have had a PPI Claim rejected; or
- You had a refund for the “Plevin only” part of your PPI (also known as a “tipping point offer”)
The Plevin ruling means that if more than 50% of your PPI’s cost went to hidden commission to the lender, or the lender and the broker combined, and it was not sufficiently explained to you, you are due compensation.
This means if you were sold PPI, it is more than likely you have a claim, as an average of 67% of what customers paid for PPI premiums was attributed to commissions from insurers. Banks invariably failed to mention the commission.
Because Plevin also applies to those who have been turned down historic PPI claims, there could be an additional 1.2 million individuals affected. If you were turned down prior to the August 2019 deadline, you may have been mis-sold through secret, undisclosed commission.
Who were the biggest lenders that mis-sold PPI?
The PPI saga was the largest financial mis-selling scandal of all time. Total payouts of compensation currently amount to approximately £36 billion and, with the new Plevin aspect of the claim, this is still rising.
64 million PPI policies were sold by hundreds of financial firms between 1990 and 2010. Some of the main lenders in the Plevin PPI scandal are:
- Capital One
- M&S Bank
- Black Horse
- Bank of Scotland
- Co-operative Bank
- Abbey National
- Alliance & Leicester
- Royal Bank of Scotland (RBS)
If you took out a loan, credit card, mortgage, or any other type of credit with any of the above lenders, it is possible you may have been mis-sold PPI. If any sort of commission was paid on this PPI policy, you may be eligible to recieve Plevin PPI compensation from any of the above financial firms.
How much can I claim for Plevin PPI cases?
If you purchased PPI and the commission was above 50% of the cost and you weren’t informed, you are entitled to the difference back in the compensation. For example, typically, a £10,000 loan over five years would see £500 compensation for a Plevin PPI case.
The FCA has also advised there will be a historic interest rate plus 8% to consider when doing calculations.
Our panel of solicitors are well versed in working out compensation for mis-sold financial product claims like these, and can guide you through how much you may be eligible for should you have a claim.
How can I start my claim?
Claim Experts make starting your Plevin PPI hidden commission claim easy. We have a panel of legal experts who are on hand to talk you through the process. There is no obligation to use their service after they have performed their initial checks, and none of the checks will affect your credit score.
If you are one of the thousands in the UK that might have been affected by the undisclosed PPI commission scandal, contact one of the ClaimExperts panel of solicitors today and they will be in touch to talk you through the next steps.
There are no upfront costs, and any payments to them will simply be deducted from your compensation award should your claim be successful.
How can Claim Experts help?
Have you been a victim of hidden PPI commission mis-selling? If you were subject to secret fees from your PPI broker and/or bank, you may be entitled to compensation. The ClaimExperts panel of solicitors can guide you through any potential claim, and they work on a No Win, No Fee basis, so there is no risk to you.
Our panel have experience in bringing successful claims against those who mis-sell financial products.
Plevin v Paragon Personal Finance Limited Ruling – https://www.supremecourt.uk/cases/docs/uksc-2014-0037-judgment.pdf