What Is The Plevin Case And How Does It Effect PPI Claims?
With so many developments in the world of PPI, it’s hard to keep up with the latest news regarding the mis-sold insurance that may well affect you and your prospective claim. Well, we’re here to help, serving as your PPI guides, specifically educating you about a recent development, the Plevin case, and the effect it’s set to have on PPI claims.
What Is A PPI Claim?
First, here’s a little background on Payment Protection Insurance (PPI). It was mis-sold throughout the 90s and noughties as part of mortgages, loans and credit card policies, citing that it would help repay the policy holder’s debt, should their income fall as a direct result of illness or unemployment.
The insurance was later found to be essentially void and was only sold as part of these policies to increase lenders and bankers profits with many PPI’s, becoming more lucrative than even house or car insurance.
In 2011 it was revealed to the public that millions of banks had been mis-selling the insurance, and as a result, had been fined, making them susceptible to compensation claims, thus coining the term ‘PPI claim’.
In the seven years that have since followed that discovery, a staggering £31.9 billion has been paid out in compensation to PPI claims, making the mis-selling of PPI one of the most expensive scandals in UK financial history.
What Is The Plevin Case?
The Plevin case or specifically, the Susan Plevin case was first formally brought to court in 2014 and was based around the huge amount of commission taken from her PPI payments.
The court ruled that although Susan Plevin wasn’t officially miss-sold PPI, she hadn’t been notified that a total of 71% of the commission had gone back to her lender, therefore entitling her to compensation.
The Financial Conduct Authority subsequently introduced the ‘Plevin Rule’, a law that meant if more than 50 per cent of a consumer’s PPI cost went as commission to the lender, and this wasn’t explained to them, then they are entitled to some type of monetary compensation.
How Has The Plevin Case Affected PPI?
Certain reports state that 67% tended to be the average amount of commission on a PPI policy, meaning that millions of people, including you, could be eligible for some sort of compensation from an original PPI provider. This essentially means that anyone who was offered and took PPI as part of a policy is owed some sort of amount back.
In terms of the amount of compensation, you can expect to receive in conjunction with the Plevin Rule, a loan of £10,000 over five years will typically entitle to you about £500 worth of compensation fees.
Unfortunately, if you have already claimed and received PPI compensation, you are not able to receive any more reimbursements, even if your lender took home more than 50%.
Hopefully, we’ve helped you to understand a bit more about the Plevin Case and the effect it has had on PPI claims as a whole.
