What is a Plevin case?
Susan Plevin is a retired college lecturer who took legal action against Paragon Personal Finance after she had PPI added to a loan.
During her claim for mis-sold PPI, she also discovered that 71.8 percent of her PPI premium was taken as commission by the PPI provider, Paragon’s credit broker and Paragon itself. Susan Plevin argued that Paragon’s failure to disclose this commission amounted to an unfair contractual relationship and therefore she should be eligible for significant levels of compensation. The Supreme Court ruled in Plevin’s favour.
The FCA subsequently published guidance that if a lender or broker paid commission that amounted to over 50 percent of a PPI premium, this would constitute an unfair contractual relationship.