The following FAQs provide more information about Plevin, The Claims Guys and our legal partners.
We have answered the most frequently asked questions about Plevin below:
Plevin PPI FAQs
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 Supreme Court 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.
What does a 'large commission payment' mean?
Lenders were usually paid a commission by the insurance provider, following the sale of PPI. The commission was taken out of the PPI premiums paid by consumers. So whilst consumers may have thought the premiums were for their cover, some of it was actually commission paid to the lenders for the sale of 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, according to the Regulator, the average commission banks were paid for PPI policies was 67%i.
I have already made a PPI claim can you help me with a Plevin PPI claim?
If you have previously made a PPI claim 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 your lender defended your PPI claim and you were not awarded compensation, or if you have not previously made a PPI claim, our legal partner may be able to help you make a Plevin PPI claim.
My lender has already said my PPI policy was not mis-sold, can I claim based on Plevin?
If your PPI claim was initially defended and you were not awarded compensation, our legal partner can check with your lender to find out if you are eligible to make a Plevin PPI claim.
What is the difference between a Plevin PPI claim and a mis-sold PPI claim?
Whilst a Plevin PPI claim is made in respect of the sale of a PPI policy, the basis of the claim and claims process are different to a mis-sold PPI claim.
Even if your PPI policy was not mis-sold, your Plevin PPI claim could be successful!
Historically, when lenders sold PPI they failed to disclose the commission they received, which was taken out of the PPI premiums paid by consumers. So whilst consumers may have thought the premiums were for their cover, some of it was actually commission paid to the lenders for the sale of the PPI policies.
A lender’s failure to disclose commission may have created an unfair relationship with the consumer. Following a court ruling, commonly known as the Plevin ruling, if this applies to you, this money can be claimed back and that is where a legal partner can help.
Can I make a Plevin PPI claim directly to my lender?
As a Plevin PPI claim is made in respect of the sale of a PPI policy, it is affected by the PPI deadline.
The Financial Conduct Authority set a deadline of 29 August 2019 for PPI complaints. This means that generally, if you did not make a complaint to your lender on or before 29 August 2019, you can no longer raise a claim about the sale of your PPI policy by complaining directly to your lender or the Financial Ombudsman Service for free*.
Currently, the only way to make a Plevin PPI claim is through a litigated claims process, which may involve the commencement of legal proceedings against your lender.
You do not need to use one of our legal partners to complete a Plevin PPI check and assess your eligibility for a Plevin PPI claim. You are free to seek advice elsewhere and are able to proceed with your claim through an alternate solicitor.
*There are some exceptions to this, more information about this can be found on the Financial Ombudsman Service website.
Who are The Claims Guys?
Based in Altrincham, Cheshire, The Claims Guys are one of the leading financial claims management companies in the country.
Established in 2009, we have spent over a decade helping our customers to claim compensation that is rightfully theirs.
We are proud to be a leader in our industry and to have helped over 573,000i customers take back over £1.6bnii in compensation for mis-sold financial products.
- Calculated up to January 2021.
- Figure shown before any applicable Income Tax is deducted – calculated up to January 2021.
How will The Claims Guys be involved in my Plevin PPI checks?
When you complete your details online we will ask you to sign a Letter of Authority on behalf of a named legal partner for each lender you believe you held a PPI policy with.
We will then pass all relevant information we hold for you to a named legal partner to allow them to start work on your Plevin PPI checks.
Where our legal partner identifies a potential Plevin PPI claim, they will issue you with their Legal Pack which will provide further information about their services and the Plevin PPI claims process. We may provide ongoing administrative support to our legal partners to help them progress your potential claims.
Will The Claims Guys charge me any fees for referring my Plevin PPI checks to a legal partner?
You will not pay any fees to The Claims Guys. We receive payments from our legal partners for each customer we refer to them. This is not a cost that you pay and will be paid directly to us by the legal partner.
For details about fees charged by our legal partners, please read the Legal Partner FAQ below.
What is a legal partner?
A legal partner is a firm of solicitors who are experienced in investigating, negotiating and settling litigated financial claims relating to unfair relationships between consumers and lenders.
- Who are our legal partners?
What happens once my claim is referred to a legal partner?
The legal partner will conduct a review to check whether you may be eligible to make a Plevin PPI claim and, where necessary, complete a Plevin PPI check by making a Data Subject Access Request (DSAR) to your lenders.
Where the legal partner identifies a potential Plevin PPI claim, they will issue you with their Legal Pack which will provide further information about their services and the Plevin PPI claims process.
If your claim has sufficient merit the legal partner will prepare and present your Plevin PPI claim to your lender, which may include making a court claim against your lender.
What fee do our legal partners charge for Plevin PPI claims?
A fee will only be payable if you have a successful claim. Where your claim is successful, our legal partners charge a fee of up to 40% plus VAT of any settlement refund offered by your lender.
There may be additional costs associated with your claim. All fees and costs will be outlined in the Legal Pack.
How long will my Plevin PPI claim take?
Though all claims follow the same process, our legal partners cannot guarantee a timescale for completion as there are variables involved, such as the complexity of the claim or time taken for a lender or the court to progress a claim.
How likely is my Plevin PPI claim to be successful?
Whilst there have been many successful litigated Plevin PPI claims in recent years, undertaken both by our legal partners and other solicitors, the success of any claim is not guaranteed.
Our legal partners will make every effort to ensure that you receive any compensation due for your Plevin PPI claim however there is the chance that your claim could proceed to a court hearing, and not achieve the outcome, you, or they hope for.
Will I have to go to court?
Our legal partners have experienced success in settling Plevin PPI claims without any requirement to go to court. However, there is the chance that your claim will require a court hearing.