If you have tried to make a PPI complaint, but found that your PPI company went bust, you shouldn’t let your claim go. There is a chance to reclaim your mis-sold PPI through other avenues.
What if my PPI company went bust?
If your PPI company went bust and was liquidated, you still have a case for compensation. The Financial Services Compensation Scheme (FSCS) has a facility in place to those mis-sold PPI to gain compensation if it is owed to them.
How can the FSCS help if my PPI company went bust?
The purpose of the FSCS is to compensate customers who were wrongly sold various financial products by companies that have since gone bust. It compensates the public using public tax money. It is generally intended as a last resort for those who are unable to be reimbursed via other means.
If your PPI company went bust and there are no other ways to claim compensation, you can get in touch with the FSCS.
The Plevin rule
If the PPI you have taken out had a disproportionate amount of commission, you may also be entitled to claim under the Plevin rule.
The Plevin rule is the result of a landmark legal case. Susan Plevin, a retired lecturer, took her lenders to the Supreme Court. When making her PPI claim, she discovered that 71.8 percent of the premium was taken as commission. She argued that the disproportionate commission amounted to an unfair relationship.
The Supreme Court ruled in Plevin’s favour. She was awarded the full return of her PPI premium and interest. The Financial Conduct Authority (FCA) stated that commission of 50 percent or more is likely a disproportionate amount which is unfair to the borrower. This offered fresh grounds for complaint for many people.
Just like a PPI claim, you also have a case for Plevin compensation even if your PPI provider has gone into administration.
If you’ve taken out PPI and believe you could also be eligible under the Plevin ruling, don’t hesitate to get in touch with our expert legal team.