PPI+
Payment Protection Insurance (PPI) was designed to cover repayments in certain circumstances where you couldn’t make them yourself. These include if you were made redundant or couldn’t work due to an accident, illness, disability or death.
As many as 64 million PPI policies have been sold in the UK, mostly between 1990 and 2010, some as far back as the 1970s. However, many of these were often mis-sold. For those who have complained about the sale of PPI, £33bn has already been paid back.
Deadline
The FCA set a deadline of 29th August 2019 for PPI mis-selling claims to be made. Generally, if you didn’t make a complaint to your provider on or before 29 August 2019, you can no longer claim money back for PPI by complaining to providers or the Financial Ombudsman Service.
Plevin vs Paragon
In 2014 a new type of PPI mis-selling emerged: Unfair Contractual Relationships, also known as Plevin.
What is a Plevin case?
Susan Plevin is a retired college lecturer who took legal action against Paragon Personal Finance after she had PPI added to a loan.
During her claim for mis-sold PPI, she also discovered that 71.8 percent of her PPI premium was taken as a commission by the PPI provider, Paragon’s credit broker and Paragon itself. Susan Plevin argued that Paragon’s failure to disclose this commission amounted to an unfair contractual relationship and therefore she should be eligible for significant levels of compensation. The Supreme Court ruled in Plevin’s favour.
The FCA subsequently published guidance that if a lender or broker paid a commission that amounted to over 50 percent of a PPI premium, this would constitute an unfair contractual relationship.
