What is Plevin and how it helps PPI claims made after the August 2019 deadline?
Here we explain what it is and why it could help you claim new or additional PPI.
How Does Plevin Affect PPI Claims?
If you’ve already made a successful claim, you may be able to make an additional claim under the undisclosed commissions ruling.
If you have been in a similar position to Mrs Plevin you do NOT have to have submitted your claim to the bank before the PPI deadline of 29th August 2019.
If your claim has been rejected, you can submit another claim and cite high levels of commission as the reason for your claim.
If successful, you should receive a refund back against all the commissions.
What Is the Plevin Ruling?
Mrs Plevin’s case set a precedent. The FCA ruled that if others want to make a PPI claim about high levels of commission they can do so. Any amount of commission over 50% is classified as being mis-sold. The individual can receive a refund based on the amount of commission paid.
This means that even those who knowingly bought PPI could make a case if they were unaware of high commission. At the time that many policies were mis-sold it was common for banks and lenders to have 67% commission attached to the PPI policy.
Thousands of people have already made successful cases thanks to the Plevin ruling.
Plevin vs Paragon Personal Finance
Plevin refers to Mrs Susan Plevin. In 2014, she brought a PPI case to Paragon Personal Finance. She argued that she was mis-sold a PPI policy on a loan because of high levels of commission that was not disclosed to her at the time of purchase.
Her PPI policy was 71% commission. She argued that if she had known the commission was so high, she might not have bought the policy in the first instance. The case went to the Supreme Court, and it ruled in Mrs Plevin’s favour, resulting in a refund.
New Rules about Plevin PPI Claims
The FCA is currently reviewing its guidance on Plevin. An individual can claim about the commission if it was not disclosed at the point of sale. However, the FCA is now discussing whether a lack of reminding customers about the policy and the commission could also be a cause for a refund.
In addition to this, last year a Plevin PPI case went to the Manchester County Court, and a couple received a full refund of their 76% commission. Usually, individuals will receive the percentage over the 50% threshold. The FCA is not changing the rules based on this case. If individuals choose to seek a full refund, they will need to take the case to court.
Our team of solicitors are well versed in taking action in these cases. all solicitors are duty bound to establish the FULL settlement figure.