Store Card 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.

There is nothing more enjoyable for Brits than a spot of retail therapy and to fund this many thousands of consumers took out store cards from high street retailers such as Debenhams, Top shop, Next or Mothercare as far back as the 1980s to early 2000. During this period most retailers sold PPI with their store cards either without the customer's full knowledge or didn't adequately check their suitability for this type of insurance. This has meant that many thousands of consumers were entitled to compensation for mis-sold PPI in the wake of the biggest mis-selling scandal to hit UK financial services industry.

What is Store Card PPI?

Store cards were a very lucrative option for the high street stores. They were sold to those who were either unwilling or unable to pay for their products in one go and made a profit through those who failed to pay off the entirety of the balance each month enacting interest charges of between 18 and 30 per cent. At their height, many thousands of store cards were sold with PPI often added to the equation.

Consumers who took out these store cards as long ago as the 1980s are unaware that they could be entitled to payouts.

Regulations were introduced in 2011 and since then store cards are nowhere near as prevalent in society. In these regulations, the government banned upfront discounts and commission being added to store cards, and enforced a seven-day cooling off period after any store card sale.

Store Card Retailers - Who Owns Who?

If you took out a store card before December 2011, you may be entitled to claim PPI compensation. Please see the list below of store card by retailer and how PPI was mis-sold by retailers.

GE Capital Store Cards

GE Capital was owned by the largest store card provider at the time, General Electric Consumer Finance UK. They supplied store cards for clothing retailers as well as department stores.

At one time GE Capital had approximately 50-70 per cent share of the store card market according to a report by the Competition Commission.

In 2008, however, Santander bought GE Capital’s store card business. As a result of the takeover, Santander Bank took responsibility for PPI complaints including those on historic store cards that had been provided by GE Capital or GE Money for the following clothing retailers and department stores:

About Ikano Bank Store cards PPI

This is a little-known brand name however, Ikano Bank are responsible for many store card brands that they provided accounts for, many of which may have had PPI. These include:

Please note: Ikano Bank have not engaged in sales of new PPI policies after 23rd March 2009. Therefore, accounts with Ikano Bank taken out before 23 March 2009 can only be considered for having PPI sold with or added to.

Creation Store Card PPI

Creation provides credit cards, store cards and loans to UK consumers via well-known high street retailers.

Creation is formed of two separate companies:

1. Creation Financial Services Ltd who issues store and credit cards; &
2. Creation Consumer Finance Ltd who provides personal loans.

Both companies trade under the name Creation and are responsible for providing finance through store card brands such as:

Other Store Card Providers

• Marks & Spencer (M&S) Store Card PPI – PPI complaints and the sale of PPI on store and credit cards are the responsibility of M&S, who in 2004 had a deal with HSBC to operate the store card and credit card facility.
• John Lewis Partnership (JLP) Store Card PPI – All PPI sale and PPI complaints on John Lewis store cards and credit cards are the responsibility of JPL. In 2004 John Lewis had an agreement with HSBC to operate the store and credit card side of things.
• Argos Store Card PPI – Argos is owned by The Home Retail Group. However, in 2016 Sainsbury’s bought out the Home Retail Group. Responsibility for PPI sales and complaints on Argos store cards still rests with Argos, despite Sainsbury’s now owning the company.
• Homebase Store Card PPI – Homebase was owned by Home Retail Group until 2016. All PPI sales and PPI complaints for Homebase store and credit cards still need to be taken up with Home Retail Group.

It is worth mentioning that some of the above-mentioned brands that Creation have provided store cards for, have used other lenders when providing store cards for customers. This can lead to much confusion when it comes to figuring out if the store card you had did have PPI.

Please contact us to carry out a free PPI check if you would like to check if your store card had PPI attached to it, we will be happy to help.

While there are a lot of store card names and lenders listed above, that were sold with PPI or PPI was added to, this is not a complete list. If you need further information or assistance regarding your store card lender or provider, refer to our lender pages or get in touch.

How was Store Card PPI Charged?

PPI on store cards, it has been established, is costlier than on credit cards. This is because of the higher rates of interest charged on store cards than on credit cards. This has a direct effect on the amount of PPI charged as the PPI is calculated using the interest rate as a percentage of the outstanding monthly balance.

PPI on store cards is paid for on a monthly basis by paying a monthly premium, like credit card PPI. The cost is made up of three sums, which combined makes up the total cost of store card PPI.

The three parts consist of:

1. PPI premiums on store cards are worked out as a percentage of the amount outstanding on the store card each month. Typical charges by lenders can be up to £1.50 for PPI on every £100 of debt on the store card. This is compared to a typical charge of 79p for PPI on every £100 of debt on a credit card.
2. Interest is charged in addition to the monthly store card PPI premium, the rate of which is the same that is charged for the outstanding balance on the store card if PPI had not been added.
3. If payments have been missed, further charges may be incurred to the store card account. If PPI has been added to the account, the charges will be higher than if PPI wasn’t added to the account, leaving the account holder with a bigger debt.

The above illustration shows that the amount of PPI stated by a lender on a store card is the first part of working out the PPI cost. The reason is that when the PPI premium is added to the outstanding balance on the store card, it increases the cost of PPI substantially. This is due to outstanding balances on store cards incurring interest rates of over 15% on top of what lenders would charge for credit card interest.

A report published by the Citizens Advice Bureaux (CAB) in 2005 titled Protection Racket highlighted concerns the CAB had in relation to PPI and how it was sold.

The report identified PPI policies offered by some of the UK's largest credit card lenders only providing 12 months payments maximum if the policy were needed by policyholder due to unemployment.

The monthly benefit received from the PPI policy would only cover a maximum of 10% of the outstanding balance.

This crucial information was not being passed on to customers when the PPI was being sold with their credit cards and in many cases, customers were not aware of what they were buying. Some later found that they had PPI but were completely unaware that it had been added.

How we can help with your Store Card 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

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