Plevin: All You Need To Know

Although the deadline for PPI mis-selling claims passed in August 2019, the opportunity for millions to claim continues.

Following the Supreme Court case of Plevin v Paragon Finance in 2014, millions of people are still eligible to claim against their PPI policies.

The effects of the Plevin case helps to grant further justice to those who have been wrongfully charged for their PPI premiums.

Although the legal jargon can often be confusing and ever-changing, we will help you through the Plevin process to claim back what you are owed.

Payment Protection Insurance

PPI was often sold alongside loans, credit cards, mortgages, and other types of credit agreements. Where a policyholder couldn’t work due to accident, injury, or illness, it was designed to give cover and peace of mind on their repayments.

The Plevin Scandal

The Plevin case paved the way for a new branch of PPI claims, not by the nature of mis-selling, but for the commission taken.

Mrs. Susan Plevin responded to a leaflet through her door from a credit broker who offered to refinance her existing debts. They advised that she should borrow from a lender and take out a PPI cover on the loan.

Plevin v Paragon Personal Finance

The Supreme Court determined that the amount of undisclosed commission (71.8% split between the lender and broker) taken from Mrs. Plevin’s PPI policy constituted an unfair relationship under the Consumer Credit Act 1974, s. 140A(1)(c).

Following this judgment, the Financial Conduct Authority introduced new rules and guidance for lenders. Any commission earnt over 50% of the total PPI premium is the tipping point to becoming an unfair relationship.

The landmark ruling of Plevin now means millions are eligible to claim back undisclosed commissions taken by lenders.