Since the 1970’s, financial advisors and brokers working in banks and building societies were selling Payment Protection Insurance (PPI) policies as an addition to loans, credit cards and mortgages. Some of these banking agents persuaded, exaggerated – and in some of these cases outright lied – to get people to sign up to PPI policies, acquiring high levels of commission on the back of unaware, hard-working customers – just like you!
Plevin is a legal case investigating the amount of PPI premiums that were attached to high-earned commissions that were not disclosed to the clients. The case applies to all people who were sold PPI for the past four decades, whether they were aware of it or not.
And, if it wasn’t for Susan Plevin, this rule would not exist and banks would be able to get away with it.
Susan Plevin, a retired college lecturer, claimed legally against mis-sold PPI on her loan with Paragon Personal Finance as it did not meet her needs. During her complaint, Manchester County Court informed her that a staggering amount of 71.8% of her PPI premium was taken as commission by the lender, their credit broker LLP Processing Ltd and Norwich Union who provided her with the PPI in the first place.
After being treated unfairly, Susan Plevin returned to court to request the full premium plus interest returned to her due to failure of the lenders disclosing this information to her at the time of sale.
In June 2014, the case went to the Supreme Court and November 2014, the judge deemed Susan’s relationship with the lender as unfair under the Consumer Credit Act (CCA 1974). Manchester County Court got the referral of decision of the compensation amount to Susan.
There’s a deadline – don’t miss out
The deadline for raising a PPI claim is 29 August 2019. Although it seems like a long way off, it will be here before you know it.
What is the Financial Conduct Authority (FCA) take on Plevin?
The FCA’s Plevin rule states that, if more than 50% of the cost of your loan, credit card and mortgage PPI was commission to the lender and it was not explained to you, you are owed the extra money above that cost.
FCA figures on PPI policies state that an estimated 53 million policies were issued and half the amount of PPI policies sold still remains unclaimed!
Plevin can apply to most types of PPI policies associated with different types of credit products under the below categories: