The Plevin vs Paragon Personal Finance Ltd (Plevin) case has opened up fresh grounds for redress for those who purchased a PPI product. Here’s how you can tell if you have been Plevined and if you can make a complaint under the rule.
Plevin vs Paragon Personal Finance Ltd (Plevin)
The Plevin rule is a result of a landmark case in the PPI timeline, Plevin vs Paragon Personal Finance Ltd. Susan Plevin, a retired college professor discovered that her PPI premium was mostly commission. 71.7 percent of the premium was taken as commission by Paragon, credit broker LLP Processing Ltd and provider of the PPI, Norwich Union.
As a result, she took legal action against the lenders, claiming an unfair relationship. The high court ruled in Plevin’s favour. The ruling was that if an advisor failed to disclose that the lender had received a large commission from the product provider, the sale was unfair under the 1974 Consumer Credit Act. Consequently, the broken had to repay the premium.
Your complaint – have you been Plevined?
While many believe that you must have been mis-sold PPI to claim under the Plevin rule, this is not the case.
If your initial PPI claim was successful or unsuccessful, you are still able to make a complaint about being Plevined.
A complaint under the Plevin ruling establishes whether the commission was unfair on your claim. It does not look at whether the PPI product was mis-sold. Even if the product was legally sound, you can still pursue a claim if the seller received a large, undisclosed commission.
The Financial Conduct Authority (FCA) recognises commissions of 50 percent or higher as unfair. If the commission you paid is higher than this, there are certainly grounds for complaint.
Additionally, you can easily check if you have paid an unfair amount of commission on your PPI premium. Check your loan statements, or contact your lender for this information.
If you believe you could be entitled to make a Plevin complaint, get in touch. Our team of expert advisors can offer advice on the next steps to take.