How Does Plevin PPI Work?
Even though the deadline for claiming PPI has passed, you could still be owed thousands in compensation. Thanks to a court ruling in 2014, a Plevin PPI claim can get you any commission back that you may have paid at the time.
PPI sales were banned in 2009 and a date was set in 2017 by the FCA by which all claims should be made. This happened after backlash in 2005 when sales practices were called into question after high commission rates came to light.
The PPI claim end date was back in August 2019, but a separate Plevin PPI claim can be made in order to reclaim any commission that was earned when the policy was sold in the first place. It’s a separate claim that’s independent of the initial PPI settlement, which focussed on whether a policy was mis-sold.
The Plevin PPI claim is about any commission that wasn’t made clear to you at the time. This could have been added to your policy without your knowledge, which gives you grounds to make a claim. If over 50% of your PPI bill went on commission and you weren’t informed, you are due this back, according to the FCA.
Lawyers have argued that there is no deadline for Plevin PPI claims as this is separate from the PPI mis-selling deadline. As such, you can still get money back on your PPI policy.
It’s important to understand that you’ll only be paid the compensation over the 50% margin. If your commission was 70% of the loan, you will only receive 20% of that back. Depending on your policy, this could range from £1,000 to £40,000.
The name Plevin comes from the 2014 case to the Supreme Court for Susan Plevin. It was ruled that the lender failed to disclose the large commission, which was defined as unfair under the Consumer Credit Act. Now Plevin PPI claims focus on the commission aspect of PPI loans, which means they can still be considered.
While you won’t be able to make a Plevin PPI claim if you’ve had a successful PPI claim, Pam Ritchie recently had a Plevin PPI claim on top of a settled PPI claim, which could set a precedent for the future. You may also be eligible if you haven’t previously put in a claim or you’ve had one rejected. You could also be eligible for a second claim if you only received some of the commission; you might be able to get the full amount.