If you’ve had your PPI claim rejected, it’s not necessarily the end of the claims process.
Following the Plevin vs Paragon Personal Finance (Plevin) case in the Supreme Court, you might still be able to seek redress. We discuss the Plevin rule, and what it means for you.
Plevin vs Paragon Personal Finance Ltd
Retired college lecturer Susan Plevin took her lender to court in a landmark case. Paragon Personal Finance Ltd added PPI to her loan, taking 71.8 percent of the premium as commission.
Plevin took action against Paragon, credit broker LLP Processing Ltd and provider of the PPI, Norwich Union. She argued that failure to inform customers of the high levels of commission amounted to an unfair contractual relationship. As a result, Plevin believed she was entitled to the return of the full premium plus interest.
The courts ruled in the favour of Plevin. Judge Lord Sumption ruled that as the PPI seller did not disclose the large commission from the provider, the sale was consequently unfair under the 1974 Consumer Credit Act.
The Plevin ruling could now give thousands of people fresh grounds for complaint because of the commission paid on a PPI premium.
Had your PPI claim rejected
Even if you’ve had your PPI claim rejected, you may still be able to claim under the Plevin ruling.
Following the landmark case, the Financial Conduct Authority (FCA) made a statement. The industry watchdog is urging those to check the commission paid on PPI products.
If it is above 50 percent, it is likely you can make an unfair relationship claim against your lender. The FCA will look at the levels of commission paid on your PPI. If the level was not proportionate, or you were misled by brokers on the commission you paid, you may be entitled to claim.
If you believe you may be able to complain under the Plevin rule, contact our expert team today for advice.