What Is Plevin and Why Is It Relevant When You Reclaim PPI?

PPI claims — you might be sick of hearing about them. But with just 14 months left to reclaim PPI, the end is getting nearer. Maybe you’ve made a claim and received your money, or perhaps you are one of the many people who has been putting it off or thinking “it doesn’t affect me”.

Well, even if you think otherwise, it could affect you. Did you know that 64 million PPI policies were sold in the UK? That’s just under the total number of the population, meaning that some people had more than one policy — remember, you couldn’t have PPI if you were under 18.

In case your memory needs refreshing, Payment Protection Insurance (commonly now known as PPI), was sold with mortgages, loans and credit cards. If a customer couldn’t keep up with their repayments due to sickness or unemployment, the insurance would cover this.

However, this lucrative product made the banks a lot of money and, as, such, the banks forced staff to try and sell it to everyone, regardless of whether the customer actually needed the insurance or was eligible to make a claim using it. Many customers were told it was compulsory or that it would improve their credit score, and others had it added automatically without their knowledge or consent.

This is why so many people have made successful PPI claims. Thousands of consumers were never aware that they had PPI, but, upon further investigation, then realised they did. PPI payouts can be a four-figure sum, making it worthwhile to take the time to check and make a PPI claim — either by contacting the bank yourself or using a trustworthy claims company. Since 2011, the banks have repaid over £30 billion to customers.

What is Plevin?

You may have heard or read about “Plevin”. But, what exactly is this term and how does it relate to PPI? The Plevin rule means thousands more people can claim PPI and it even allows those who have previously made an unsuccessful PPI claim to claim again.

Plevin refers to Mrs Plevin, who brought a PPI claim to Paragon Personal Finance. A staggering 71% of Mrs Plevin’s PPI sale was a commission. In 2014, a landmark ruling by the Supreme Court deemed that this was also a form of mis-selling and, as such, Mrs Plevin won her PPI case.

This set the precedent for thousands more people to make a case under the Plevin rule based on the commission on their PPI sale. The rule states that if over 50% of your PPI was a commission, you can make a claim. At the height of the mis-selling scandal, the commission was often 67%.

If your claim has previously been rejected, you can make a new case to reclaim the commission from the bank. However, it’s important to note that if you’ve made a claim that was successful, you can’t claim again under Plevin.

How Do I Make a PPI Claim Under Plevin?

Making a PPI claim under Plevin is exactly the same as making any other claim. However, when you have to explain to the bank how your PPI was mis-sold, you must state that you believe that there was a high level of commission.

Your first step is to find evidence of PPI. Searching for old financial paperwork is the only way to do this. If you don’t have any previous financial paperwork, you can contact the bank or lender and ask them about any previous accounts with PPI. Alternatively, a reputable claims company can do the digging for you. The latter option is a good choice for those who don’t have the time or don’t want the hassle of dealing with the bank.

In the event that you did have PPI, you can make a claim to the bank or lender based on the commission on the sale. If your PPI sale had over 50% commission, you will receive a refund from the bank.

The Financial Conduct Authority has set the PPI deadline for 29th August 2019, meaning you don’t have much longer to make a claim. You might be surprised at how much money you end up receiving — money that would be a significant help. Don’t delay, start your claim today.