Despite the official deadline for Payment Protection Insurance (PPI) claims passing on 29 August 2019, a specific route for reclaiming funds may still be available to some UK consumers. This avenue, often referred to as a 'Plevin' claim, relates to the undisclosed high commission paid on PPI policies, rather than the traditional mis-selling aspect.
The 'Plevin' ruling, stemming from a Supreme Court case, established that if a significant portion of a PPI premium was commission and this was not disclosed to the customer, it could be deemed an unfair relationship. This means that even if a PPI policy was not mis-sold in the conventional sense – for example, if the customer was eligible and understood the product – they might still be entitled to a refund of the undisclosed commission, plus interest.
For those considering a 'Plevin' claim, the process differs from standard PPI claims. It requires demonstrating that the commission paid to the lender or broker was substantial and that this was not made clear at the point of sale. While there is no new official deadline for these specific claims, consumers should be aware that financial institutions may have internal cut-off dates or that the general statute of limitations could apply, making prompt action advisable.
Identifying whether you have a potential 'Plevin' claim involves reviewing old credit agreements, loan documents, or bank statements to see if you had a PPI policy. If you believe you had PPI, even if a previous mis-selling claim was rejected, it is worth investigating the commission element. Specialist claims companies or legal advice can assist in assessing the viability of such a claim, though consumers can also approach their lender directly.
The Financial Conduct Authority (FCA) has provided guidance on 'Plevin' claims, emphasising that firms are expected to handle these complaints fairly. The ruling primarily impacts policies where more than 50% of the premium was paid as commission, and this fact was not transparently communicated to the consumer at the time of purchase.