PPI & Plevin FAQ

  • What is Plevin?

    In 2006, Mrs Plevin was sold a PPI policy to cover her secured loan from Paragon Personal Finance Ltd.  She took a Claim to the Court of Appeal in November 2014, alleging that the contract and her relationship with Paragon was unfair due to:

    Non-disclosure of the commission*.
    The percentage of the PPI premium that was commission.
    The Supreme Court ruled that failure by the Lender to disclose to Mrs Plevin the large commissions payable out of her PPI premiums created an unfair relationship between her and the Lender and redress was awarded to Mrs Plevin.

     

    New Reason to Complain

    In August 2017 the Financial Conduct Authority (FCA) announced changes to the complaints handling guidance which means you can now also:

    complain even if PPI was not mis-sold or you don’t think it was mis-sold
    complain even if you had a previous complaint about mis-selling of PPI rejected
    This means you may be able to claim back a proportion of the money you paid for PPI, if the Lender earned a high level of undisclosed commission from the sale of the PPI policy and that level of commission was over 50% of the total cost of the PPI.

    * “commission” means the part of the total amount paid in relation to a payment protection contract that was not due to be passed to and retained by the insurer, excluding any sums which may be payable under profit share arrangements.

  • What does a 'large commission payment' mean?

    Lenders were usually paid a commission* by the insurance provider, following the sale of PPI. The commission would have come out of the premiums you paid for the PPI policy. Often, the Lender was paid a high level of commission, typically more than half of what you have paid for your PPI policy.

    * “commission” means the part of the total amount paid in relation to a payment protection contract that was not due to be passed to and retained by the insurer, excluding any sums which may be payable under profit share arrangements.

  • I have already received my PPI refund, can I claim based on Plevin?

    If you have previously claimed on your PPI and your Lender offered you full redress, they were required to put you in the position you would have been in if the PPI had not been sold to you. This means the commission* has already been refunded and you cannot claim again based on Plevin.

    If the Lender offered you Comparative Redress or a Gesture of Goodwill we may still be able to submit a Claim based on Plevin, as potential excess commission may not have been included in this offer.

    * “commission” means the part of the total amount paid in relation to a payment protection contract that was not due to be passed to and retained by the insurer, excluding any sums which may be payable under profit share arrangements.

  • My Lender has already said my PPI policy was not mis-sold, can I claim based on Plevin?

    If your PPI Claim was initially rejected, we can write to your Lender to find out if your Claim is affected by Plevin. The Financial Conduct Authority (FCA) requires all Lenders to write to their customers on or before 29 November 2017 if they are affected by the Plevin ruling. If your Claim was rejected post November 2015, your Lender should have already informed us and you of this and we will be in touch with an update in due course.

  • Am I eligible to claim on Plevin?

    You may be eligible to make a Claim if your PPI policy covered repayments on a credit agreement (such as Credit Cards, Loans, Mortgages, Home Shopping Accounts, Catalogues and Finance Agreements) and a high level of commission* was earned by the Lender.

    In addition, your PPI policy had to be taken out before 6 April 2007 and open after 6 April 2007 or taken out after 6 April 2007 (whether or not it was still open on or after 6 April 2008).

    If you are not sure whether you are eligible, do not worry! We can still make an enquiry on your behalf.

    * “commission” means the part of the total amount paid in relation to a payment protection contract that was not due to be passed to and retained by the insurer, excluding any sums which may be payable under profit share arrangements.

  • I have not claimed for PPI yet, how does Plevin impact me?

    Yes! Typically Claimants have a number of PPI Claims across different loans, credit cards, mortgages and store cards. There is no limit to the number of Claims you can make.

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