Mortgage 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 credit card 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.
What Is Mortgage PPI?
Over the last couple of decades, lenders have sold mortgage payment protection insurance (MPPI) to many people. The policy would help safeguard your mortgage repayments if you became unemployed or were out of work due to an accident or sickness.
However, MPPI was widely mis-sold by banks and other lenders but also by brokers, to many people, the majority of which did not know they had the policy.
Mortgage PPI Costs & Charges
If you have a mortgage / remortgage or have had them in the past, it is worth looking back through any paperwork you may have to see if you paid PPI without knowing. It is possible that you may have been sold MPPI or it was added without your knowledge.
MPPI is usually charged on a monthly basis and is paid on top of the monthly mortgage payment charge.
This side of claiming back PPI is often overlooked but is just as important if you think about the amount the sums of money involved when taking out a mortgage.
Lenders Who Sold PPI with Mortgages
The following list of high street lenders are known to have mis-sold MPPI on their mortgage products:
Please note: The above is not a complete list of lenders that sold MPPI with a mortgage product, please look at the lender pages for a lender or provider that doesn’t appear above.
- Bank of Scotland
- Cheltenham & Gloucester
- Co-operative Bank
- Clydesdale Bank
- First Direct
- Halifax Bank
- Lloyds Bank
- Lloyds TSB
- Midland Bank
- NRAM (Northern Rock)
- Nationwide Building Society
- Royal Bank of Scotland
- Yorkshire Bank
- Yorkshire Building Society
How was Mortgage PPI Charged?
There are two ways in which mortgage PPI was sold and charged for but this depended on type of product it was; Single Premium mortgage PPI and Monthly Premium mortgage PPI.
Single Premium mortgage 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 mortgage. The customer therefore repays not only the monthly mortgage 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 mortgage, it usually only covers a 12-month period. Also, customers who settled their mortgage early, were not refunded the remainder of the single premium PPI cover that was no longer needed.
Single premium PPI on unsecured personal mortgage 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 mortgage 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 mortgages.
How we can help with your Mortgage 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.
Mortgage Providers who Sold PPI
The following is a list of mortgage providers who are known to have sold PPI. Please note this is not an exhaustive list.