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2 Jan 20

The Claims Guys is working in collaboration with its Legal Partners to pursue potential PPI Plevin Claims

The Claims Guys is working with a number of Legal Partners to pursue potential Plevin PPI Claims. Although the deadline for submitting Claims regarding mis-sold PPI has passed, there is still an opportunity to investigate whether you are entitled to Compensation if your PPI policy payments included undisclosed commission charges.

You may be eligible for Compensation if:

  • You have not previously complained about the mis-selling of PPI (the deadline for mis-sold Claims was 29 August 2019)
  • You had a Claim for mis-sold PPI rejected
  • You had a refund for the ‘Plevin only’ part of your PPI (known as a ‘tipping point offer’)

If, in the past, you have had a full refund for PPI mis-selling from your Lender this will have included a refund of all commissions paid on the policy, so there is no remaining loss to claim back.

What is Plevin?

In November 2014, the Supreme Court in Plevin v Paragon Personal Finance said that, in some circumstances, an undisclosed commission on a PPI policy could result in an unfair relationship between the lender and consumer under the Consumer Credit Act 1974.

The term ‘Plevin’ is used as the name of the Claimant who won the Claim in the Supreme Court, against Paragon Personal Finance Ltd (Paragon), regarding undisclosed commission was Mrs Plevin. It was found that 71.8% of the premium Mrs Plevin paid for her PPI policy was commission!

Two years later, the Regulator ruled that any payments for commission that were over 50% of the cost of the PPI policy created an unfair relationship and, therefore, Lenders had to pay back anything over the 50% tipping point (plus interest).

Pursuing further commission charge refunds

In July 2018, Manchester County Court ruled that the Dorans’ were entitled to a refund (plus interest) of the full amount of the 76% commission they paid on their PPI policy with Paragon, rather than just the amount over the 50% tipping point. The reasoning behind the ruling was that, as customers, they would not have taken out the policy if they had been aware of the level of commission on it.

The Claims Guys’ Legal Partners are able to pursue Claims for Plevin PPI through the legal route, seeking a refund of the full amount of undisclosed commission against Lenders.

What is the process?

The Claims Guys will contact your Lender on your behalf to complete a PPI Check. If the investigation determines that you had PPI and there is a potential Plevin PPI Claim, then The Claims Guys can refer you to one of their Legal Partners to continue the process. The Claims Guys will only transfer data with your permission.

See The Claims Guys’ website for more information: www.theclaimsguys.co.uk/esign/

Sources:

  1. https://www.theguardian.com/money/2018/jul/02/uk-banks-could-face-new-multibillion-pound-claims-after-ppi-ruling
  2. https://www.moneysavingexpert.com/news/2018/07/judge-rules-couple-can-reclaim-all-of-their-ppi-commission/