For many, Payment Protection Insurance (PPI) was sold as a safety net, only for consumers to later discover hidden fees and inflated charges, leaving them financially burdened. One of the most significant issues surrounding PPI was the undisclosed commission fees that lenders pocketed, often without customers’ knowledge.

In 2014, the landmark Plevin v. Paragon Personal Finance ruling changed the landscape for those with unfairly high commissions. This legal precedent allows consumers to reclaim fees that were kept secret by lenders, even if the PPI policy itself wasn’t mis-sold. This article will walk you through the process of making a Plevin claim and how it can help you recover unfair PPI fees.

1. What Are Plevin Claims?

Plevin claims stem from a pivotal case in 2014, Plevin v. Paragon Personal Finance, which revealed that consumers had been charged excessive and undisclosed commission fees when they purchased PPI. 

You could receive compensation if a third party received more than 50% of your PPI premium in commissions without your knowledge. Unlike mis-sold PPI claims, Plevin claims focus solely on these hidden commission fees, regardless of whether the PPI policy was deemed suitable or mis-sold. This legal ruling allows thousands of individuals who may have been unaware of the commissions charged to recover unfairly paid fees.

If you’ve been claiming PPI from Legal and General and found that your claim was unsuccessful, the Plevin ruling might provide a second opportunity for compensation.

Since 2011, UK banks have paid out over £40 billion in compensation to individuals who were mis-sold PPI (Payment Protection Insurance). (FCA)

2. Why Should You Make a Plevin Claim?

Anyone who purchased PPI and paid excessive, undisclosed commission fees has a crucial opportunity. Under the Plevin ruling, financial institutions are legally obligated to return the excess commission to customers. 

The fairness principle behind this claim stems from the fact that lenders and insurers must disclose all costs and fees clearly. If they failed to do so, you could be entitled to reclaim the money you were unfairly charged.

Even if your PPI policy was not mis-sold, you could still be eligible for compensation. Filing a Plevin claim is your chance to ensure fairness and reclaim what you’re rightfully owed.

Read more: For more insights into reclaiming unfair charges, be sure to check out our article, Reclaim Financial Justice: How Secret Commission Claims Can Help, where we explore how secret commission claims can also help you recover unjust fees.

3. Am I Eligible for a Plevin Claim?

You must have purchased a PPI policy associated with a loan, mortgage, or credit card to qualify for a Plevin claim. Whether a commission portion of your premium exceeded 50% of your overall premium is a critical factor.

If it did and the commission was not disclosed at purchase, you may be eligible to claim. Even if you’ve missed the original PPI deadline or had your previous claim rejected, a Plevin claim could still be your way forward. The Plevin ruling applies regardless of whether your PPI was mis-sold.

For example, legal and general PPI claims are eligible for this type of action if the commission exceeds the 50% threshold and was undisclosed.

4. How Much Compensation Can You Expect?

The amount of compensation you can receive from a Plevin claim depends on the amount of excess commission you paid and the interest accumulated over time. On average, many claimants receive a refund of the commission they paid, plus any interest on top. 

However, the refund usually represents the discrepancy between the disclosed amount at the time of purchase and the actual charge. The more you paid in undisclosed commission, the higher your refund could be. The compensation you receive for unwarranted charges varies, but you can expect a fair amount.

The 2014 Plevin ruling allowed consumers to claim compensation for undisclosed commissions on PPI policies. As of 2020, this ruling contributed to around £3 billion in additional compensation payouts. (Financial Ombudsman Service)

5. How Plevin Claims Differ from Mis-sold PPI Claims

Plevin claims and mis-sold PPI claims are distinct, though they both aim to provide compensation for customers who were treated unfairly by lenders. However, the key difference is that it focuses on undisclosed commission fees, whereas mis-sold PPI claims argue that the policy was unsuitable or sold under misleading circumstances.

You don’t need to prove that your PPI policy was mis-sold to make a Plevin claim. This makes Plevin’s claim a valuable option for those who were rejected for a mis-sold PPI claim or who believe their PPI was sold fairly but involved excessive hidden fees.

6. How Cooper Hall Solicitors Can Help You with Your Plevin Claim

At Cooper Hall Solicitors, we understand how overwhelming the process of claiming back PPI fees can be, especially when it involves legal complexities like Plevin claims. 

Furthermore, our experienced team specializes in handling such claims with expertise, ensuring that every client receives the compensation they deserve. With our no-win, no-fee guarantee, you don’t have to worry about upfront costs. 

We’ll assess your case, gather the necessary evidence, and guide you through the entire process. Our goal is to provide personalized, empathetic legal support, ensuring that your claim is handled efficiently and professionally.

Read more: For more information on how the No Win No Fee agreement works, check out our detailed article, “What is a No Win No Fee Agreement, and How Does It Work?“.

7. The Plevin Claims Process: What to Expect

Making a Plevin claim is straightforward with the right legal help. Here’s what you can expect:

1. Initial Assessment: We will review your case to determine whether you are eligible for a Plevin claim.
2. Evidence Collection: We will gather all relevant documentation to support your claim, including details of your PPI policy and payment history.
3. • Claim Submission: We will submit your claim to the lender or insurance company, providing a detailed explanation of your entitlement to compensation.
4. Settlement Negotiation: We will work to secure a fair settlement that reflects the full extent of the unfair commission charges.
5. Dispute Resolution: If necessary, we will represent you in any disputes, ensuring that your case is resolved to your satisfaction.

As of the August 2019 deadline for standard PPI claims, over 64 million PPI policies had been sold in the UK, but many individuals missed their chance to claim by the deadline. The introduction of Plevin claims gives these individuals another opportunity to seek compensation. (FCA)

8. Real-World Examples of Successful Plevin Claims

• Many individuals have successfully reclaimed unfair PPI fees through Plevin claim with the help of expert legal teams. For instance, one client was able to secure a refund of £5,000 after discovering that 60% of their PPI premium had been charged as undisclosed commission.
• Another case involved a family who had previously been rejected for a mis-sold PPI claim, only to find that they were eligible for a significant payout through a Plevin claim. These cases highlight the power of the Plevin ruling and how legal expertise can turn an overlooked issue into a substantial financial recovery.

9. Conclusion

You can be eligible for compensation through a Plevin claim if you paid for PPI and received excessive, undisclosed commission fees. The process may seem complex, but with the right legal help, you can navigate it with confidence. 

So, don’t miss your opportunity to reclaim unfair fees and restore what’s rightfully yours. Contact Cooper Hall Solicitors today to discuss your Plevin claim. Our expert team is ready to guide you through the process and ensure that your claim is handled professionally. Take action today and start reclaiming your money.

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