It is well established that when lenders sold payment protection insurance (PPI) they typically failed to disclose the commission(s) they received, which was taken out of the PPI premiums paid by consumers. The effect was that whilst consumers may have thought the premiums were for their cover, some of the money paid was actually commission(s) paid to the lenders for the sale of the PPI policy(ies). A lender’s failure to disclose commission(s) may have created an unfair relationship with the consumer. Following a court ruling, commonly known as the Plevin ruling, if this applies to you, this money can be claimed back and that’s where we can help.
You will be eligible to claim for undisclosed high commission on PPI if:
- More than 50% of your PPI premium was commission for the lender, and you didn’t know;
- Your PPI has been active at some point since April 2008; and
- You haven’t already made a successful PPI claim.
What is the Plevin case?
Susan Plevin, was introduced to a lender (Paragon) by a broker who assessed her ‘demands and needs’ for PPI. Paragon accepted the business, and carried out money laundering checks but did not discuss the suitability of the insurance.
The loan for £34,000 at 7.3% APR over ten years, was regulated by the Consumer Credit Act 1974. The PPI was a single premium policy costing £5780 – 71.8% of this was commission.
The claim: Plevin claimed she was mis-sold the PPI as it did not meet her needs. She discovered the PPI contained undisclosed high levels of commission and argued she may not have taken out the policy had she known this as the PPI did not represent value for money.
The Supreme Court case in June 2014 centred on an ‘unfair relationship’ under the Consumer Credit Act 1974 between her and Paragon regarding the non-disclosure of high commission within the PPI premium.
Outcome: The Supreme Court ruled Plevin had been mis-sold PPI and the non-disclosure of commission was an unfair relationship with the lender.
The PPI Deadline
The Financial Conduct Authority (FCA) imposed a deadline for PPI claims of 29th August 2019. Whilst this has now passed, the deadline only applies to complaints made directly to the lenders or referred to the Financial Ombudsman Service (FOS). This means you can still submit PPI claims through court proceedings.
How we can Help
We will 1) assess if you are eligible to claim; 2) agree a no win no fee arrangement with you; and 3) process your claim.
The next steps are as follows:
- Complete the eligibity form
- We will email you an information pack
- If you are eligible, we will send you our terms of business and a no win no fee agreement
- If you are happy with our terms, we will start the process of obtaining compensation for you.