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PPI Plevin

SUSAN PLEVIN WAS SOLD A PAYMENT PROTECTION (‘PPI’) POLICY IN 2006 TO COVER HER SECURED LOAN FROM PARAGON PERSONAL FINANCE LTD.

She was not informed that 71.8% of the PPI premium payment was commission paid to Paragon by the insurance company providing the cover. After discovering this, Mrs Plevin took her claim to Court alleging that her relationship with Paragon was ‘unfair’ due to the non-disclosure of the commission, pursuant to 140A (1) of the Consumer Credit Act 1974. The legal argument was not that the policy had been mis-sold, but that the high commission rendered the contractual relationship unfair.

The Supreme Court unanimously ruled that the non-disclosure of commission of 71.8% of the total PPI cost was ‘unfair’ under the Consumer Credit Act 1974 because it led to a sufficiently ‘extreme inequality of knowledge and understanding’. If she had known about the commission, she probably would not have bought the policy. The Court ordered the full repayment of her PPI plus interest.

This decision set a strong precedent that, even if a PPI policy was not ‘mis-sold’, consumers could make a claim for the full refund of their PPI plus interest where high levels of commission (later defined by the FCA as over 50%) were not disclosed to the consumer.

WHAT WAS THE IMPACT OF THIS DECISION?

Unfortunately for the Lenders, millions of PPI premiums, although not mis-sold, included high levels of commission (an average of 67%) that were not disclosed. Accordingly, any PPI compensation claims that were previously rejected on the basis they were not mis-sold (or PPI claims that were not submitted before the 29 August 2019 deadline) can now be presented to the Court under Plevin.

BUT WHAT ABOUT THE 29 AUGUST 2019 DEADLINE FOR PPI CLAIMS SET BY THE FCA?

This deadline is not relevant to a Plevin claim, as the legal arguments are completely different. The deadline only relates to PPI policies that were ‘mis-sold’ i.e. they did not know they were paying for PPI, they were pressured into purchase or were not suitable. Plevin focuses purely on the unfair relationship created by the Lender’s failure to disclose high-level commissions under the Consumer Credit Act 1974.

HOW DO I KNOW IF I HAVE A PLEVIN CLAIM?

Ask yourself the following questions:

  • Did you have a PPI policy?
  • Was the policy sold to you before 6 April 2007 and still open after 6 April 2008 OR sold after 6 April 2007 (it does not matter whether it was still open after 6 April 2008)?;
  • Did you have a previous mis-sold PPI claim rejected, receive a partial refund for the Plevin part of your PPI (known as a ‘Tipping Point’ offer) OR have you never made a mis-sold PPI claim and thought you had missed the deadline?

If you answered yes to all the above, you may be entitled to bring a PPI Plevin claim and receive compensation.

HOW MUCH COULD I BE OWED IN COMPENSATION?

The amount you might be entitled to is determined by the premiums paid, the credit that was used to pay for the premium and the interest that you have paid on the credit used to pay for the premium. Whilst it is difficult to say precisely how much compensation you are entitled to without all this information, it is likely to run into hundreds or thousands of pounds. Our average claim is currently in excess of £3,500.

WHAT SHOULD I DO IF I THINK I MAY HAVE A PLEVIN PPI CLAIM?

  1. Complete the form below
  2. We will contact you to see if you qualify for a claim
  3. Sit back and leave the rest to us

Please note: Do not worry if you do not have a copy of your policy agreement. We will be able to request a copy from your lender for you and investigate whether you have a claim.

DO I HAVE TO PAY ANYTHING UPFRONT?

No, we work on a No Win No Fee basis. If for any reason we’re unsuccessful, you won’t pay a penny.

GET IN TOUCH

Fill in the form and our team will get back to you within 2 working days.

Call us

0333 011 5105*
*9am-5pm (Mon-Fri)






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