Are PPI claims back in business?

What is a Plevin PPI Claim?

A Plevin PPI claim focusses on a Supreme Court case ruling from 12th November 2014, and is centred around hidden commission. Mrs Susan Plevin was sold a PPI policy to cover her secured loan from Paragon Personal Finance Ltd. Through careful reading of the small print, Mrs Levin discovered that an incredible 71.8% of the PPI premiums she had paid under the policy were in actual fact a hidden commission to the lender. Plevin and her legal team put to the court that this was unfair.

The Supreme Court agreed, and stated that the sale of the PPI policy was unfair due to:

• Non-disclosure of the commission payment; and
• The percentage of the PPI premium that was paid as commission.

This case then set precedent for future cases. The FCA has since ruled that if anyone else wishes to bring a PPI claim about the high levels of hidden commission within PPI premiums, they could do so.

Told that you did not have a PPI Claim previously?

The biggest winners from this are the customers who completed a PPI check previously and were told that the policy had not been mis-sold. In essence there was no mis-selling by the sales person or financial lender. However we can now complete a free Plevin PPI check to see if the policy contained an unfair commissions. Imagine finding out that 60% of the £20 PPI premium that you did not want, so £12 a month, was paid in a hidden commission.

Hidden PPI commissions will have occurred when an agent, introducer, or finance broker sold you a PPI agreement from a bank or lender. If the agent or broker received a fee or commission for bringing you to the bank, and the bank did not inform you of this, that is a hidden, secret, or undisclosed commission. The lender or bank must inform you of ALL of the fees within the PPI transaction. This is why we write to them on your behalf to get the paperwork.

A general statement that “a commission may be paid in certain circumstances” is not adequate enough either. They must inform you at the point of sale how must the commission was. If they fail to do so it is a form of fraud. Both the bank and the finance broker may be liable for potential claims.

Can I still claim after the PPI Deadline?

Yes. Because the two types of claims are completely different, the 2019 PPI deadline does not apply to cases. In fact, there is no deadline at all. This is down to the fact that the claim itself is centred around a different area of law – The Consumer Credit Act 1974.

Am I eligible to claim Plevin PPI?

If the below applies to you, you may be eligible to claim:

• Your PPI policy was sold before 6 April 2007 and open after 6 April 2008; or
• Your PPI policy was sold after 6 April 2007 (whether or not it was still open after 6 April 2008);
• You have not previously complained about Mis-sold PPI;
• You have had a PPI Claim rejected; or
• You had a refund for the “Plevin only” part of your PPI (also known as a “tipping point offer”)

The Plevin ruling means that if more than 50% of your PPI’s cost went to hidden commission to the lender, or the lender and the broker combined, and it was not sufficiently explained to you, you are due compensation.

This means if you were sold PPI, it is more than likely you have a claim, as an average of 67% of what customers paid for PPI premiums was attributed to commissions from insurers. Banks invariably failed to mention the commission.

Because Plevin also applies to those who have been turned down historic PPI claims, there could be millions individuals affected. If you were turned down prior to the August 2019 deadline, you may have been mis-sold through secret, undisclosed commission.

How can I start my claim?

Evans Hughes make starting your Plevin PPI hidden commission claim easy. Our team of experts are on hand to talk you through the process. There is no obligation to use our service after we have performed our initial checks, and none of the checks will affect your credit score.