Can You Claim Plevin If You’ve Already Claimed PPI?
- Details on a Plevin PPI claim, whether you’ve had a payout or not
- Mini Plevin PPI calculator
- Plevin PPI - is it legit?
Having had a successful PPI claim in the past could make you feel as though you’ve completed your compensation journey, but this isn’t necessarily the case. Thanks to the Plevin rule, you might be able to benefit from an additional payout on your PPI policy. This article will look at how a Plevin PPI claim differs from a regular PPI payout and why you could still be eligible.
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Is Plevin PPI Legit?
A Plevin PPI claim is absolutely genuine. Instead of focussing on whether the policy was mis-sold in the first place, it looks at how much of your policy was charged as commission. If the total commission was greater than 50% of the PPI policy, then this gives you grounds to make a claim.
Thanks to a precedent set by Pam Ritchie, you may be able to receive an additional payout on your PPI claim. Ritchie received a £20,000 settlement in 2013 for her mis-sold PPI and believed she had received all that she was entitled to. However, a claim for Plevin PPI gave her an additional £10,000. This was only possible because it was a separate claim made on the commission, which she didn’t receive compensation for in the original payout.
If you’re still unsure about whether Plevin PPI is genuine, it’s named after the landmark case of Susan Plevin. In 2014, Plevin was ruled in favour by the court because a large percentage of her PPI policy was taken as commission without her knowledge. A staggering 71.8% went towards the lender and Susan Plevin was never informed of this. She was able to claim PPI compensation, but for a different reason. Thanks to her case, other people are also able to benefit.
The main point is that the commission was never properly informed to you. Considering that sales people were only trusted by 2% of UK homeowners in Eco Quote Today’s 2022 Home Energy Survey, it’s no wonder that they have a bad reputation.
How to Find Out If You’re Eligible
Thanks to the Plevin rule, PPI claims processed after 2017 are automatically checked to see if they qualify for a Plevin PPI refund. If you claimed on your PPI policy after this time, it’s likely that your case had already been checked to see if you’re eligible. If your claim was settled before 2017, you are most likely still owed compensation under the Plevin rule.
For those that are yet to make a claim, you can see for yourself if you’ll be eligible. If you still have all your PPI paperwork, you should be able to check how much of your policy was charged as commission. The golden rule is that the amount of commission must be above 50%. Any extra commission above this threshold is what you’ll receive in compensation for your Plevin PPI claim.
Are You Still Eligible If Your PPI Claim Was Rejected?
The good news is that most PPI policies contained levels of commission above 50%, so even if your original PPI claim was rejected from a mis-sold point of view, you are more than likely still due compensation for the commission you had paid. Even if the financial ombudsman was involved and they rejected your claim, you can still be eligible to claim Plevin PPI.
Lenders were ordered by the FCA to contact those who had been rejected to inform them that they would be eligible under the Plevin criteria. You may have been aware of this and seemed wary, or the message might have gone into the ether. The main thing to take away is that anyone who had a PPI policy should be able to make a Plevin PPI claim.
Can You Claim Plevin If Your PPI Claim Was Successful?
Some sources will tell you that this isn’t possible, but the precedent set by Pam Ritchie proves that the Plevin rule still applies to successful applicants. To break it down even more, a PPI policy can be claimed on in the following ways:
The mis-sold policy
The Plevin rule
- The tax automatically deducted from the payout
The reason why you can still claim Plevin PPI if you’ve already had a successful mis-sold PPI claim is that they are from different angles. Instead of receiving compensation based on a mis-sold policy that you didn’t need in the first place, the Plevin rule focusses on the level of commission that was taken without your knowledge.
How Much Can I Get With Plevin PPI?
Unlike claiming for a mis-sold policy, you’re rarely going to receive a payout in the tens of thousands with a Plevin PPI claim. This isn’t to say that it’s not worth doing, as this is money that you’re entitled to. What’s important is that all claims are different. An unfair relationship is generated between the consumer and the lender if commission is excessive, which is why anything over 50% is the threshold.
If the commission on your PPI claim was 65%, for example, you will only receive 15% of that. This will depend on how much you claim was, which will affect how much compensation you’ll get. Additionally, the FCA specified that the historic interest rate should be considered and an additional 8% should be added when calculating Plevin PPI compensation.
The graph below is a sort of mini Plevin PPI calculator. It gives rough levels of compensation you could receive, depending on the amount of commission your PPI claim consisted of. This is for different levels of commission on a PPI policy that was £10,000.
Keep in mind that the interest has only been calculated at 8%, so this doesn’t include the historic interest rate at the time of the policy. If the level of commission for your £10,000 policy was 55%, you’d receive 5% back through a Plevin PPI claim, as well as the 8% interest, plus the historic interest rate. This would give you anything from £1,300, and that’s on the lower end of the scale. A 75% commission could land you with an amount around £3,300.