What Is the Plevin Ruling and How Does It Affect You?

The Plevin ruling is relevant for all those wishing to claim PPI before the upcoming deadline. We explain what this rule is and how it’s leading to even more PPI claims.

With just seven months left until the Financial Conduct Authority (FCA) PPI deadline, consumers need to act soon if they want to contact their bank in regards to a refund for a mis-sold PPI policy. The Plevin ruling is relevant for all those wishing to make a PPI claim.

What is the Plevin rule and how is it connected to PPI claims? In this article, we explain what it is and why it could help you claim PPI.

Plevin vs Paragon Personal Finance

Plevin refers to Mrs Susan Plevin. In 2014, she brought a PPI case to Paragon Personal Finance. She argued that she was mis-sold a PPI policy on a loan because of high levels of commission that was not disclosed to her at the time of purchase.

Her PPI policy was 71% commission. She argued that if she had known the commission was so high, she might not have bought the policy in the first instance. The case went to the Supreme Court, and it ruled in Mrs Plevin’s favour, resulting in a refund.

What Is the Plevin Ruling?

Mrs Plevin’s case set a precedent for future cases. After due consideration, the FCA ruled that if others want to make a PPI claim about high levels of commission, they can do so. Any amount of commission over 50% is classified as being mis-sold. The individual can receive a refund on the percentage amount over fifty.

This means that even those who knowingly bought PPI could make a case if they were unaware of high commission. At the time that many policies were mis-sold, it was common for banks and lenders to have 67% commission. Thousands of people have already made successful cases thanks to the Plevin ruling.

How Does Plevin Affect PPI Claims?

If you’ve already made a successful claim, you can’t make another claim due to the Plevin ruling. But, if you think you could have been in a similar position to Mrs Plevin, you must submit your claim to the bank before the PPI deadline of 29th August.

If your claim has been rejected, you can submit another claim and cite high levels of commission as the reason for your claim. If successful, you will receive a refund back for anything over the 50% threshold.

New Rules about Plevin PPI Claims

The FCA is currently reviewing its guidance on the Plevin rule. Currently, an individual can claim about the commission if it was not disclosed at the point of sale. However, the FCA is now discussing whether a lack of reminding customers about the policy and the commission could also be a cause for a refund.

In addition to this, last year a Plevin PPI case went to the Manchester County Court, and a couple received a full refund of their 76% commission. Usually, individuals will receive the percentage over the 50% threshold. The FCA is not changing the rules based on this case. If individuals choose to seek a full refund, they will need to take the case to court.

As the clock is ticking the deadline gets closer. The sooner you start your PPI claim, the sooner you can find out if you are due a refund.

Logican provides claims management software for a variety of claims companies. Our guide to the best PPI claims companies can help individuals learn more about each of the companies handling PPI claims.