What is a High Commission PPI Claim?

Payment Protection Insurance or PPI was sold by banks, building societies and lenders for decades using hard-selling tactics to attach it to most forms of financial credit agreements.  This included personal loans, business loans, overdrafts, credit cards, mortgages, catalogue accounts and store cards.

PPI was designed to cover your repayments if you got sick or became unemployed, but in reality, it only paid out for a limited period usually 1 year, and the maximum payout for some PPI policies was less than the cost of having it.

Common mis-selling tactics used by banks & lenders included:

• Having PPI added to your finance agreement without permission;
• Saying if you took out PPI you would get a better deal;
• Selling PPI when it was inappropriate for the individual, for example, to provide cover for ‘unemployment’ for those who were self-employed, or not asking about pre-existing conditions that could invalidate it;
• Insisting that PPI was compulsory for your finance agreement so you had to have it.

What is PPI Commission?

It has recently come to light that when PPI was sold by banks and lenders the majority of the cost was actually commission paid to the lender. A percentage of what you paid for your PPI premium was commission and this went to the bank or broker, rather than the whole amount going towards paying for your insurance. The findings were based on a 2014 Supreme Court case brought by Susan Plevin against Paragon Personal Finance (Plevin v Paragon Personal Finance Ltd), now referred to as 'Plevin'. The facts of the case were that Mrs Plevin had been sold a PPI policy but was not told that a high percentage of the premium (71.8%) was paid in commission. The Court ruled that this made her relationship with her lender unfair under section 140A of the Consumer Credit Act 1974.

At the same time as launching the PPI deadline, the FCA introduced guidance for cases where commission of more than 50% had been received by the lender for the PPI.  Under this guidance, anyone who had PPI from a bank or lender attached to where the finance product was still active after 2008 may be owed some money. In the past, in order to reclaim any PPI, you had to have been mis-sold it.  The FCA's new guidance says if over 50% of your PPI cost went as commission to the lender, and that wasn’t explained to you, the lender is to refund you the commission paid over 50%.

What makes me eligible for a PPI commission claim?

If any of the following scenarios apply you may be eligible to make a claim:

• Your credit agreement was covered by section 140A of the Consumer Credit Act 1974;
• You weren’t told about the commission that was being charged on your policy;
• The commission paid was more than 50% of your premium with the average commission being charged at 60-70% of premium being paid by most banks and lenders;
• The PPI was not cancelled before April 2007 and the finance product didn’t end before 6 April 2008.

MoneyPlus Legal is a Plevin Claims specialist, whose core focus is on helping consumers who were sold PPI to use all available and possible options to obtain a legal remedy for compensation of undisclosed & high commission from the finance provider.

If you’re unsure whether you are eligible to make a claim under the Plevin ruling please don't worry as MoneyPlus Legal will always conduct a full review of all your PPI credit agreement(s) to establish whether there is a case for unfair relationship.

MoneyPlus legal will use their specialist 'Plevin' claims experience to investigate, negotiate and settle any claim as quickly as possible. Our Plevin PPI Check and claim service is simple and completed on a no win no fee basis* and you will be kept informed throughout the claim process.

The Plevin Claims Process