What is Plevin and what has it got to do with PPI?
Payment Protection Insurance (PPI) and Plevin will be a phrase that we will start to hear a lot of over the next few years, and likely up until the end of 2019 (which is the subscribed date when PPI claims are expected to end).
Are Plevin and PPI linked?
Plevin and PPI are linked in that anyone who has had PPI applied in the past (whether they have checked or not, already secured a successful refund or whether they have had a refund that has been declined).
The Plevin court case heard at the end of 2014 means that there is potential to recover further monies from any hidden commissions paid by the lender to third parties once the PPI had been sold.
A potted history of the Plevin case
Mrs Plevin had already secured a refund in relation to PPI, but she discovered that commission had also been paid by the Bank to a third party in relation to the sale of the policy. This was challenged in the Court and, after various hearings, it was heard by the Supreme Court which ruled in Mrs Plevin’s favour. This has meant that the Banks now face having to pay back the commission that they paid to any third parties if it was not already discussed and annotated in the legal documents that you signed when PPI was taken out and which, of course, was never the case.
The Financial Conduct Authority (FCA) are deciding how it is to proceed but if you have PPI and obtained a refund in the past, or if this refund has been declined, we can still look to recover the commission element. Also, if it has been declined previously, potentially we can look at opening up the PPI claim again on your behalf.
Can I reclaim a refund of PPI in relation to Plevin?
If you have paid PPI (regardless of whether it has been looked into, declined or you have already received a refund) then yes, we can look at obtaining a refunding in relation to any hidden commission that was paid.
This would of course mean us approaching the lender and establishing if PPI has been applied together with any commission paid to any third party. If it was paid then we will need to establish how much this was and then look to obtain a refund on your behalf.
If your claim for PPI has previously been declined, we could still potentially reopen the PPI claim again as a material fact, namely that hidden commission was not advised to you at the outset and, if this was the case, then the claim itself needs to be re-evaluated in light of this information.
What refund will I get?
This is the tricky question – What refund are you likely to get in relation to Plevin?
Well, if commission has been paid, it tends to be extremely high (in the region of 65% to 75% of the premium). It is therefore likely that you will get something. The question is just how much?
The Financial Conduct Authority (FCA) (with no legal power) is looking to suggest that anything paid over 50% of the commission is to be refunded. However, as they have no legal power there is a reasonable case for applying to have all the money back. Either way, it will depend upon the situation, how much money we are talking about and whether you want to continue with a claim when an offer has been made. However, we can establish all of this for you and take your instructions accordingly.
How can we help?
With our expertise in banking disputes, Plevin is different to PPI, in that it will require a degree of argument and certain aspects which could include opening up previously declined PPI claims and consideration of consequential loss concerning the original PPI refund if you already have received this in respect of a PPI claim.
If you have not yet established if PPI was applied in the past, then we can of course start off with this on your behalf and include with any PPI claim itself an additional element bringing in the Plevin aspect at the same time.