If you’ve read anything about Payment Protection Insurance (PPI) recently, you’ve probably seen the word Plevin mentioned. You might already know that Plevin is set to have a big effect on PPI claims or maybe you have no idea what it means at all. So what actually is it?
Plevin was a legal case that looked at how upfront companies were about the commission they got from PPI sales. After a ruling by the Supreme Court, PPI claims rules are set to change – which could mean more people are due compensation.
Let’s take a look at what Plevin means for you and your PPI claim.
The full name of the case is Plevin v Paragon Personal Finance. It was between Susan Plevin, a retired college lecturer, and Paragon Personal Finance. Mrs Plevin’s case went to the Supreme Court in June 2014 after she learned that Paragon claimed 71.8% of her PPI premium as commission.
Because the level of commission was so high, Mrs Plevin argued that she wouldn’t have taken out PPI if she’d known about it. This is because she didn’t think it was good value for money.
The Supreme Court agreed with her and she won the case. It said that if companies didn’t say how much commission they got from PPI premiums, people could claim this back.
After the Plevin case, the Financial Conduct Authority (FCA) realised it needed new PPI rules. It decided that if over 50% of your PPI premium was commission and you weren’t aware, you could get compensation. This is for PPI cases that have been active at some point since 2008.
Your PPI policy doesn’t need to be active now for you to claim – just for some time since 2008. You’ll be able to get anything over the 50% commission plus interest.
The Plevin rules will come into force on 29 August 2017. That’s two years before the PPI deadline in 2019.
Yes, Plevin could mean that thousands more customers can claim for mis-sold PPI. If your lender rejected your claim before but you could now get money back under the new rules, they will write to you. They’ll tell you that you could now claim for PPI compensation and why this is.
But if you’ve never claimed for PPI, your lender doesn’t have to write to you to tell you about the Plevin rules. You can still claim but they don’t have to let you know about it.
With the PPI deadline now in place, it’s likely that there will be a rush on PPI claims the closer we get to 2019. If you’ve got a claim, it’s a good idea to beat the queues and put this in now.
If you’re unsure if you can get compensation as a result of being mis-sold PPI policy, get in touch with OpenDoor (Legal Services) Ltd on 03301 020 220. We have experience in dealing with a number of claims having successfully claimed over 14 million pounds for PPI customers and also dealing with packaged account complaints. We operate on a no win, no fee basis.
The cost of our service is 25%, plus VAT, of any compensation awarded to you. Terms apply. For further information, please visit www.Open-Door.co.uk where you can also request a call back.