Loan Plevin PPI Commission Claim
IT'S NOT THE END OF PPI CLAIMS
PPI has been the biggest financial mis-selling scandal in the world, in which a staggering £38 billion was given back to consumers for mis-sold PPI in compensation by banks & finance providers before the 2019 PPI deadline. However, even after this the PPI scandal is far from over!
The good news is that you can still make new PPI Claims under a new ruling but this time its for undisclosed high commission. This type of PPI claim is separate to the redress scheme that ended in 2019 and is based on the amount of commission you were charged on your PPI policy.
What is Plevin PPI?
Plevin refers to a Supreme Court case from November 2014 where Mrs Susan Plevin brought a case against Paragon Personal Finance Ltd regarding her PPI policy. The claim was centred around the commission charges on a PPI policy that Mrs Susan Plevin was sold to cover a secured loan from Paragon.
Mrs Plevin later discovered that in small print of the terms and conditions of the PPI policy that a whopping 71.8% of her premium was the amount of commission she was charged by the lender. She alleged that this was unfair and unclear and took Paragon to court and the case went up to the Supreme Court.
The Supreme Court agreed with Mrs Plevin and her lawyers, and determined that the sale of the PPI policy was unfair because of the following reasons:
- The commission payment was not disclosed;
- The high percentage of the PPI premium that was paid as commission.
This decision set precedent for a new category of PPI claims, and opened the floodgates against banks and other finance firms who had sold PPI to their customers.
How is Plevin different to mis-sold PPI?
Originally the PPI scandal was focused on the mis-selling of PPI and whether the policy was suitable or not at the point of sale. A Plevin PPI claim will focus on whether your loan provider took a high-level commission from your PPI premium without disclosing it. If the commission was hidden, or the commission was unfairly high, then this is deemed to be an unfair relationship between the lender and borrower and is eligible for compensation claim.
Plevin claims are based on a completely different area of law, namely the Consumer Credit Act 1974, so they are not subject to the FCA's PPI deadline, hence claims are still being processed today.
You can make a Plevin PPI commission claim if:
You tried to make a PPI claim before August 2019 but failed due to lack of records.
You started a PPI enquiry before August 2019 but it did not continue.
Your finance was still open after April 2008.
Start a FREE Plevin PPI Check for undisclosed commission claim with MoneyPlus Legal.
What Is Loan PPI?
Payment Protection Insurance (PPI) isn’t as difficult to understand as some would have you believe. It was an optional add-on insurance policy to cover the repayments on financial products such as mortgages, loans and credit cards.
The purpose was to cover policy holders who could not work and therefore meet their monthly repayments due to sickness, long term injury or redundancy.
Banks and lenders sold PPI alongside loans to more than 20 million people over the last few decades, earning billions of pounds in profit.
However, lots of these insurance policies were mis-sold, not just by banks and lenders but also by third party brokers. It was done quite easily compared to credit cards and other products, due to the large size and length of most loans; they typically last as long as ten years, making it more likely that a customer would not be in work at some point during the loan.
Because customers were supposedly at a greater risk of being without work and therefore missing their repayments, they were frequently pressured into taking out PPI with their loans.
Types of loans PPI was sold with
PPI was often sold with the following types of loans:
- Business loans
- Flexible loans
- Hire-purchase agreements (used when buying cars and caravans)
- Home improvement loans (includes double glazing)
- Personal loans
- Point of sale loans (when buying furniture or electrical appliances)
- Secured loans
Lenders that sold loan PPI
The following list of finance providers are known to have mis-sold PPI on loans:
- Bank of Scotland
- Clydesdale Bank
- EGG (EGG Loans)
- First Direct
- Halifax Bank
- Lloyds Bank
- Lloyds TSB
- MBNA (MBNA & Virgin loans)
- Royal Bank of Scotland (RBS)
- Yorkshire Bank
How was Loan PPI Charged?
There are two ways in which loan PPI was sold and charged for but this depended on type of product it was; Single Premium loan PPI and Monthly Premium loan PPI.
Single Premium loan PPI - These policies charge an upfront premium that covers the insurance cost. The premium is added to the sum borrowed and interest is then charged on the PPI premium and on the loan. The customer therefore repays not only the monthly loan repayment but also the premium and the interest on it.
What customers may not know about single premium PPI policies is that they don't cover the duration of the loan, it usually only covers a 12-month period. Also, customers who settled their loan early, were not refunded the remainder of the single premium PPI cover that was no longer needed.
Single premium PPI on unsecured personal loans was banned by the FSA in October 2010. The reason for the ban is because the entire cost of the insurance has to be paid upfront, it leads to the borrower having to pay much more in initial repayments than they would otherwise pay.
Monthly Premium loan PPI - these are also known as regular premium PPI that are paid for on a monthly basis.
There are significant differences between this and the single premium PPI:
- Monthly PPI policies can be cancelled at any time;
- Single premium PPI can only be cancelled in the first 30 days of the policy starting and be refunded fully;
- Cancelling a single premium PPI policy after 30 days, you will only get back a proportion of the premium paid.
With the above in mind monthly premium PPI seems to offer better value than single premium PPI on loans.
How we can help with your Loan PPI Plevin Claim
MoneyPlus Legal is a Plevin PPI 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' PPI 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
Start Your Free
Plevin PPI Check
MoneyPlus Legal will call you to discuss your potential claim, confirm some details & explain the next steps to progress your claim.
Sign & Return Our Pre-Filled Forms
MoneyPlus Legal will send out a claim pack with letter of authority to sign & return back so they can start your Plevin PPI check.
Your Plevin Claim Eligibility Checked
MoneyPlus Legal will contact the lender(s) to ascertain how much commission was charged on your PPI policy & eligibility for a refund.
Start a FREE Plevin PPI Check for undisclosed commission claim with MoneyPlus Legal.
Loan Providers who Sold PPI
The following is a list of loan providers who are known to have sold PPI. Please note this is not an exhaustive list.
Other Organisations That Can Offer Help and Advice on Loan PPI
There are some regulatory bodies who can offer information and assistance regarding PPI: The Financial Conduct Authority, the Financial Ombudsman Service and the Financial Services Compensation Scheme.
Financial Conduct Authority (FCA)
12 Endeavour Square
Tel: 0800 101 8800
The FCA are the finance industry regulator in the UK. They ensure customers are treated fairly by financial services organisations, that include banks, credit card companies, loan companies and building societies.
Individual mis-sold loan PPI complaints are not dealt with by the FCA, but they can provide general PPI information. Contact the PPI provider directly, all regulated companies have procedures in place to deal with PPI complaints.
If your claim has been rejected by your provider the matter can be referred to the Financial Ombudsman Service (FOS). They can look into the matter and give you their decision.
Financial Ombudsman Service (FOS)
Tel: 0800 023 4567
The FOS deals with complaints and disputes made by customers of UK banks, building societies, insurance companies and other financial services organisations including advisers.
For the FOS to look into your loan PPI complaint you will need to have contacted the organisation concerned and allowed them to put the matter right. If you’re not happy with the organisation’s response or lack or response, only then can the FOS get involved. However, you will need to contact the FOS within 6 months after receiving the final response from the organisation concerned for them to be able to investigate the matter.
Financial Services Compensation Scheme (FSCS)
PO Box 300
Tel: 0800 678 1100
The FSCS is there to protect customers in the event of an authorised financial services organisation fails i.e. firms that are authorised by the FCA and the Prudential Regulation Authority.
If the organisation you are dealing with has gone out of business, cannot pay the claims made against it or has been declared in default, the FSCS can make an award of compensation. The award will only be a maximum of 90% of the loan PPI claim where there has been actual financial loss.