Plevin for PPI Rejections
What is Plevin?
The basis of a Plevin complaint is that the advisor earned a high level of commission for selling the PPI policy to you but failed to disclose this.
You may be able to make a complaint to your lender if they earned commission in return for the sale of a PPI policy. The bank or lender was usually paid commission by the insurer and the money for this would come out of the payments made by you towards your PPI policy.
Due to changes by the Financial Conduct Authority in 2017 to their complaints handling guidance you can now claim back the money that you have paid in PPI if the provider earner a 'high level of commission' from the sale but did not make you aware of this.
What is a high level of commission?
Many lenders would have been paid commission by the insurance provider for selling a PPI policy to you. A 'high level of commission' is usually defined by more than half the premiums paid on the PPI policy.
How do I know if I can claim based on Plevin?
If you can demonstrate that you were sold Payment Protection Insurance then as part of the investigation we will look at whether the commission received by the lender from the PPI provider was more than 50% and whether this was disclosed to you. You may previously have claimed for mis-sold PPI and had the claim rejected, Plevin ruling would still apply if commission wasn't disclosed to you and you may have another claim. We would recommend you revisit any previously rejected claim and your lender may have written to you about this.
How can MoneySave help you claim on the basis of Plevin?
You can pursue the claim yourself or you can use MoneySave's service to establish whether PPI was sold and an unfair relationship existed in the form of high undisclosed commission payments (i.e. over 50% of the premium value).
Why is it called Plevin?
The type of claim is called Plevin because it is based on a particular case regarding a Mrs Plevin. She took her particular claim to the court of appeal in 2014 regarding a PPI policy as part of secured loan with Paragon Finance Ltd. She claimed the contract was unfair due to the percentage of the PPI premium that was made up of commission and the non-disclosure of said commission.
The supreme court ruled in Mrs Plevin's favour that an unfair relationship was created between the client and the lender due to the failure to disclose the large commissions payable out of her PPI premiums. Subsequently Mrs Plevin was awarded redress.
Can I claim based on Plevin if my claim has already been rejected?
Yes, If you have already made a complaint about mis-sold PPI you are still able to to complain about any commission earned by whoever sold the PPI policy to you.
Can I claim based on Plevin if my reclaim was already successful?
If you have already had a successful PPI reclaim against your lender including redress then you will be unable to make another claim based on Plevin.
This is because you have already received any redress owed to you.