What is Plevin PPI, and Can You Claim?

Plevin PPI refers to PPI – which stands for payment protection insurance – with unfairly high commissions. The Plevin Rule refers to a commissions-only claim.

It is named after Susan Plevin who successfully won a court case against Paragon Personal Finance after realising that 71% of her PPI was a hidden commission paid to them.

Plevin’s case has set the precedent for future customers who have been sold PPI with unfairy high commissions. If over 50% of your PPI fee was actually a hidden commission, you could claim compensation from your lender.

In 2019, £332.4 million was paid to customers who had complained about the way they were sold PPI. Although the PPI deadline has now passed, you can still claim compensation on the commission you may have paid. Lawyers argue that there is no deadline for this, as Plevin cases come under the Consumer Credit Act 1974, which means they do not have a deadline.

Am I eligible for a Plevin claim?

If you have never previously complained about mis-sold PPI, or if you have had a previous claim rejected, you could still be eligible. You can even claim if you have had some of the commission refunded and want the full amount.

You will not be able to make a claim if you have already received a full payout for a mis-selling complaint however.

Can I get a Plevin claim on a mortgage?

Maybe, if there was an unfairly high commission that you were unaware of paid to your bank when you took out your mortgage.

It is possible that you have been mis-sold PPI on a mortgage, as it was often sold alongside mortgages, but the deadline has passed to claim compensation for this.

How much money can I claim from a Plevin PPI refund?

You can calculate a vague estimate on this yourself. Subtract 50 from the percentage of the fee that you paid on commission. For example, someone who paid a 70% commission on their PPI would be eligible for a 20% payout. You can check this figure with a Plevin calculator

Payouts can range from £1000 to tens of thousands, but the average payout is around £3000. However, this money is not guaranteed, and law firms may decide that very small claims are not worth their effort.

It is also worth remembering that a portion of the fee that you may win back will be paid to your lawyers.

What’s the difference between Plevin claims and PPI claims?

You can no longer make a PPI claim, but you can make a Plevin claim as they have no deadline. They focus only on the commission.

PPI claims are when customers claim back the money they spent on a PPI product that was mis-sold to them. PPI was knowingly mis-sold to people who could not afford it, and these customers were eligible to claim before the 2019 deadline.

However, Plevin claims only focus on compensating customers for the commission that was hidden in the fees of the PPI that they purchased. This means even if you were correctly sold the PPI, you could still be eligible to claim compensation on an unfairly high commission.