Home Business Insights & Advice Everything you need to know about Plevin

Everything you need to know about Plevin

by John Saunders
16th Aug 22 2:31 pm

When the 2019 deadline passed for PPI claims, many people felt their claims had been unfairly rejected. However, as of the 2019 deadline, 1.2 million people whose PPI claims were rejected were still eligible for a Plevin claim. This means even if your PPI was not mis-sold, you could still be eligible to claim some money back.

In 2010, the Financial Conduct authority (FCA) ordered firms to contact approximately 150,000 rejected claimants to inform them that they were eligible to make a new claim. Even if you weren’t among those contacted, you could still be entitled to make a Plevin claim and receive compensation.

Who is Plevin?

Susan Plevin is known for her lawsuit against Paragon Personal Finance. She successfully claimed for mis-sold PPI after learning that 71.8% (£4,150) of her PPI fee was taken as a commission. This commission was paid to Paragon, a credit broker, and Plevin’s PPI provider. Plevin claimed that this information was not disclosed. She argued that she should have the full premium and interest repaid to her.

The Supreme Court ruled in Plevin’s favour. They found that the circumstances around the commission fee were unfair under the Consumer Credit Act of 1984. The decision did not, however, draw a clear line on what exactly is deemed an unfair level of commission. This decision was left to Plevin’s local county court.

This case set the precedent for future cases where claimants complain about unfairly high commissions or undisclosed commissions payments.

What is a Plevin claim?

In 2017, the FCA published rules and guidance about PPI complaints. Plevin refers to a new mis-selling category, named after Susan Plevin.

A Plevin claim is when buyers claim money back after paying undisclosed, unfair commissions when purchasing PPIs. This is classed as any commissions over 50%, which the buyer was paying unknowingly. Anything above this 50% is eligible to be refunded to the buyer.

Am I eligible to make a Plevin claim?

1 in 9 adults are unsure whether they’ve been sold PPI at all, making it hard to know if they have been a victim of unfairly high or undisclosed commissions. You can check your credit agreements to see if you’ve ever been sold PPI. Remember, PPI is also sold under other names such as creditguard, credit cover, creditcare, and credit repayment protector.

If the lender/advisor is taking a commission of over 50% on your PPI, and this hasn’t been disclosed to you, you could be entitled to claim money back.

How much money will I get back?

You can estimate the amount of money you’ll be eligible to claim by subtracting the commissions fee % from 50.

(50 – % commissions fee) = % of your money you’re eligible to claim back

This means if you paid your lender a 65% commission fee, you would be able to claim back 15% of what you paid. The average commission fee was found by the FCA to be 67%. This means eligibility to claim back a refund of 17%.

It’s worth noting that a historic interest rate plus 8% will be considered when doing calculations.

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