Secret Commissions

PPI – Plevin Claims

The PPI scandal of the last decade and a half had huge ramifications. Not only did it show that big companies could be guilty of mal-practice on a large scale, but that they were not beyond reproach. But it seems that the payouts and the deadline which we have now passed may not have been the end of it. People may still be entitled to more.

In 2014, a court case was brought forward by Susan Plevin. In this it was determined that some policies, including PPI, were sold with excessive commission. It put forward that had the purchaser known how much commission was being paid, they may not have taken out the policy.

This case set a precedent for future cases of a similar nature. A reasonable figure of commission was set at 50% and it was determined that if a policy sold to you was over that sum, you may be able to reclaim some of the value.

Key facts and figures about Plevin cases

As discussed above, Plevin cases are not equivalent to Payment Protection Insurance cases. The Plevin ruling applies to more issues and instances than just PPI, in any case where an excessive sum of commission is deemed to have been included. Let’s have a look at some things to note about the Plevin ruling and Plevin cases:

  • The average figure for commission in PPI cases is supposedly around 67%.
  • The payouts for Plevin cases vary greatly. If you had a policy for a long time and a large payout, you may be entitled to a four-figure sum. The average probably sits at around a few hundred pounds, well worth checking.
  • The deadline for PPI claims of August 29, 2019 does not apply to Plevin claims and does not prevnt you from claiming again, or for the first time.
  • Reportedly, the majority of PPI cases are affected by the Plevin ruling.
  • In the case of a Plevin claim being successful, you are repaid the additional value over 50% of the PPI cover. If the figure was 60%, you are entitled to 10% back and if it was 80%, you are entitled to 30%.

What does this mean for me?

The ruling was set that you may be entitled to whatever the excess over 50% was on your policy. If you paid 70% in commission for instance, you would be owed the extra 20%. There is no telling at this early stage just how many people may be able to benefit from this ruling but, as yet, many and most are still unaware that it is available.


What if I have already claimed on my PPI policy?

The Plevin ruling, or secret commissions as it’s sometimes referred to, is a separate claim than the mis-selling of PPI. Regardless of whether or not you have made a claim on a PPI policy and whether or not that claim was successful, you may still be able to make this claim separately. And as the commission figures were often undisclosed, there’s no good reason not to claim and see if you might be owed money.

Last thoughts

Expect Plevin claims on PPI to be a growing trend in the future. If you were a victim of being mis-sold a policy, or even if you had a PPI policy and never got around to checking, you could be owed significant sums of money still. Checking if you could be owed money is not very time or effort intensive as it’s the responsibility of the lender to check if you claim is valid. Why not see if you can get back everything that you are owed?

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