Plevin PPI: Complete Guide
Banks and lenders across the UK breathed a collective sigh of relief after the PPI deadline back in August 2019, hoping to put the PPI scandal behind them.
However, a relatively new claim has surfaced that has helped UK residents receive compensation on their PPI cases. Find out how Plevin could help you still claim compensation with our full guide below.
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What Is Plevin?
In 2006, Mrs Plevin was sold a PPI policy for £5,780 to help cover her loan from Paragon. From that amount, £4,150 (71.8%) was taken in commissions.
Paragon did not notify Mrs Plevin of these commissions.
A case was filed and in November 2014, The Supreme Court ruled that the failure to notify Mrs Plevin about the large commissions created an unfair relationship between her and Paragon.
Mrs Plevin was awarded the full commission along with interest as compensation.
As a result of this case, the Plevin rule was introduced and means if more than 50% of your PPI costs went towards commission, either to the lender, broker or both, and it wasn't made clear to you, you are entitled to claim that back.
This is down to the lender to pay you and it doesn't matter if you paid in a lump sum or monthly for your PPI.
Is Plevin Different To Mis-sold PPI?
Yes, Plevin is different from mis-sold PPI. Both claims are in relation to the sale of PPI premiums, however Plevin does not focus on whether the PPI policy was mis-sold.
Instead, Plevin focuses on the commission that lenders failed to disclose and was secretly pocketed during the sale.
Often, the hidden commission would be paid to brokers who brought customers to banks.
The difference means that even if you were not mis-sold PPI, you may still be eligible to claim compensation. If you have had a PPI claim rejected, you might still be eligible for Plevin.
Am I Eligible to Make a Plevin PPI Claim?
You could be eligible to make a PPI Plevin claim if:
Your PPI policy was sold before the 6th April 2007 and still open after the 6th April 2008, or sold after the 6th April 2007 (whether or not it was still open after 6th April 2008)
You have not previously made a claim about mis-sold PPI
You have had a previous PPI claim rejected
You have received a refund for the Plevin only part of your PPI
How Much Can I Claim Back On Plevin?
If you purchased PPI and the commission was above 50% of the cost and you were not made aware, you are entitled to the difference back in the compensation.
An example would be for a £10,000 loan over five years, you would see £500 compensation for a Plevin PPI case.
The Financial Conduct Authority (FCA) has also advised there will be an interest rate plus 8% to consider when doing calculations.
Is There a Deadline on Plevin PPI?
No, there is currently no deadline at all. Unlike the PPI deadline that ended in 2019, Plevin claims are completely different and centred around a different area of law which is The Consumer Credit Act 1974.
How Do I Claim For PPI Plevin?
You can make a claim with a claims management company that’s FCA regulated.
They should guide you through the whole process and find out if any wrongdoing has been made during the transaction.
What is No Win No Fee
A 'no win, no fee' agreement is sometimes referred to as a ‘conditional fee agreement’ this is an arrangement between you and your chosen Solicitor. The benefit of this is if your compensation claim is unsuccessful, you will not have to pay a contingency fee for your lawyer's services, a Termination Fee can sometimes apply.
What is a claims management company?
Money Back Helpdesk is a trading style of Lead Insight, Lead Insight is a Claims Management Company. Claims management companies are here to help consumers make claims for various products and services. We deal with the paperwork and administrative details for a cost, in the process trying to make the process of claiming as stress-free and seamless as possible.
The Solicitor will handle the whole claim for you, representing you and dealing with whatever body it is that you are making a claim against.
Our panel of Solicitors handle a variety of different claim types, from Housing Disrepair to Mis Sold Car Finance, for a fee that is either taken as a percentage of the final pay-out or a lump sum payment or sometimes both.
You do not have to use a claims management company to pursue a claim. You can always contact the organisation directly and make use of the Financial Ombudsman Scheme if dissatisfied and should the claim be one which falls into their jurisdiction.
So there you have it, our complete guide to PPI Plevin. Now you know what to look out for before making a PPI Plevin claim. PPI Plevin is not to be confused with PPI tax, if you're looking for information on the meaning of PPI tax, read our accompanying guide.