Background
In 2014, Mrs Susan Plevin took Paragon Personal Finance to court. Paragon had charged Mrs Plevin 71.8% of her PPI premium as commission, without letting her know.
The Supreme Court in 2014, decided that this created an unfair relationship, as the customer was not provided with enough information to decide whether the PPI policy represented value for money; resulting in a refund for Mrs Plevin.
On average, banks charged a staggering 67% commission for selling PPI policies on behalf of insurance providers. Despite this, the Financial Conduct Authority implemented Plevin ruling that stated lenders only had to refund the commission that was over 50%. With the growing number of successful Plevin based cases it's becoming evident to us that these rules are unfair.
Did you Receive Full Compensation?
If you believe you may not have received your full compensation or even if you are unsure, MoneyPlus Legal can carry out the necessary checks to see whether you may qualify for additional compensation.
MoneyPlus Legal have extensive experience in dealing with Plevin cases. They can fully investigate your offer against the PPI you had to establish if your your 'tipping point' offer was correct. if it is found not to be the case, they can prepare a fresh claim on your behalf against the lender under a ‘no win, no fee’ agreement. In other words, you will have nothing to pay if your claim is not successful, subject to their terms and conditions.
Who can check:
Anyone who has received a partial refund of their PPI premium on the basis of a ‘tipping point’ offer: this is where the lender refunds the difference between the percentage commission actually charged in the premium and 50%
How we can help with your Plevin 'Tipping point Offer' Review
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.
Request FREE 'Tipping Point' Offer Review
Step 1
Start Your Tipping Point
Offer Review
MoneyPlus Legal will call you back to discuss your case, confirm some details & explain the next steps to progress your claim.
Step 2
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 'tipping point' offer review.
Step 3
Your Tipping Point Offer Checked
MoneyPlus Legal will contact the lender(s) to ascertain how much commission was charged on your PPI policy & assess your eligibility for a further refund.
FCA's 'Tipping Point' Rule - Is it fair ?
In the FCA's pre deadline consultation with Citizen's Advice ', Q10 asked from FCA asked: Do you agree with our proposal of a single 50% commission ‘tipping point’ at which firms should presume, for the purposes of handling PPI complaints, that the failure to disclose commission gave rise to an unfair relationship under section 140A?
Read Citizens Advice response below
Notwithstanding our previous comments we acknowledge that if the FCA is not minded to amend the rules and guidance to require full disclosure of commission for PPI sales, regardless of the size, we agree that the proposal to introduce a single ‘tipping point’ in light of Plevin would be appropriate. However, in light of the Supreme Court’s comments in this case we consider that 50 per cent or more of the PPI premium constituting an undisclosed commission is too high a proportion to exceed before the non - disclosure should give rise to an unfair relationship.
Whilst the Court of Appeal acknowledged the difficulty in defining where the ‘tipping point’ should be, Lord Sumption’s words when applying the principle in Plevin were ‘the commissions paid in this case go a long way beyond it.’ The proportion of the PPI premium which constituted commission in Plevin was 71.8 per cent. This exceeds the 50 per cent tipping point proposed in the rules and guidance by just 21.8%. This is obviously less than a quarter of the full amount of the premium and is closer to a fifth. We consider that 21.8 per cent of the overall premium is inconsistent with Lord Sumption’s words ‘a long way beyond’ the tipping point. We consider 25 per cent of the overall premium constituting undisclosed commission would be a much fairer proportion at which to place this tipping point. The commission in Plevin would exceed our proposed tipping point by 46.8 per cent which seems more analogous with the court’s words ‘a long way beyond.’
We also consider that when deciding where this ‘tipping point’ should be placed, consideration should be given to the purpose of the commission itself and whether statement ‘Calculating fair default charges in credit card contracts’ set the threshold at which a credit card default charge would be deemed to be unfair to be £12.
Section 1.3 of this report confirmed the rationale for such a threshold was that anything in excess of this amount could be deemed as unfair because it exceeded the limited administrative costs of the card issuer
Read the full Citizens Advice response to FCA rules and guidance on PPI complaints here
