Does the Plevin Rule Mean You’re Owed Money?
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Do you know what the Plevin rule is? Recent research reveals that 83% of individuals are unaware of the “Plevin rule.” This simple rule could mean you are entitled to a refund from your bank or lender due to mis-sold Payment Protection Insurance (PPI).
For over a decade, individuals have claimed PPI refunds for mis-sold policies. To date, over £34 billion has been refunded to customers. But, the Financial Conduct Authority (FCA) set 29th August as the PPI deadline. It means that all customers must submit their claims to the banks before this date.
However, a landmark case in 2014 has opened the floodgates for even more people to submit PPI claims and receive a refund.
With the tock ticking, here is all the information you need to know about the Plevin rule and why you should check if are affected by this new form of PPI claim.
The Plevin Rule Explained
In 2014, Mrs Susan Plevin took a PPI case to Paragon Personal Finance. During the case, a PPI policy was identified as having 71% commission. She argued that had she known about this high percentage at the time of purchase, she would not have bought the policy in the first instance. The case went to the Supreme Court who found in her favour, earning her a refund.
The FCA considered this case and decided that others in a similar situation could also receive a refund. As such, all those who had a PPI policy active after 2008 can reclaim PPI if over 50% of the policy was a commission. This is known as the Plevin rule.
Many of the banks had 67% commission on policies, meaning most people could claim PPI under the Plevin rule. If you have previously tried to process a PPI claim, but it was rejected, you can submit another claim based on the commission.
How Much Could You Receive from a Plevin PPI Case?
In a PPI case about high commission, individuals will receive a refund for any percentage above 50%. For example, if the bank had 67% commission, the individual will receive a 17% refund from the bank.
Individuals who have already filed these types of claims report refunds between £300 to just over £1,000.
Making a Claim before the Deadline
The FCA chose 29th August 2019 as the PPI deadline as it allowed individuals two years to process claims. But with the date fast-approaching, many people are yet to file a claim.
Making a PPI claim is relatively straightforward, but it can be lengthy — particularly if you no longer have your financial paperwork. You are urged to start as soon as possible. Below are three simple steps to start your PPI claim today:
1. Find Evidence of a PPI Policy
This is the most important part of the claim but can be the most complicated. If you still have your old financial paperwork, then you are in luck. With this, you can file your claim as soon as possible — either by contacting the bank yourself or contacting a trustworthy PPI claims company.
If, however, you do not have the paperwork, there are a few ways to gather evidence of a policy. You can contact the bank, a solicitor or a PPI claims company. The former may still have proof of a policy attached to old forms of credit (loans, mortgages and credit cards). Alternatively, a solicitor or claims company can investigate any old policies with a few personal details.
2. Submit the Claim to the Bank
Once you have evidence, you can then process your claim at the bank. Again, you have a choice to do this yourself or use the services of a company. No matter which option you decide, the important part is to state how the policy was mis-sold to you. If you wish to submit a claim due to high levels of commission, you must write this on the claim form, or write “Plevin.”
If a claims company has identified your PPI policies, it can continue its work and contact the bank on your behalf. If you don’t have the time to process a claim before the deadline, this option is ideal.
3. Wait for an Outcome
Once the bank acknowledges your claim, it should respond with an outcome within eight weeks. If it needs more evidence or information, it will contact you.
If the claim is upheld, you will receive a refund. If you’ve worked with a PPI claims company, you will be required to pay them a small percentage of your refunded amount. Due to a government fee cap, it will never be more than 20% (plus VAT).
If your claim is rejected, you have the choice of sending it to the Financial Ombudsman Service (FOS). It will review the case and make a final decision. The FOS is currently handling a huge volume of cases, so be prepared to wait if you choose to refer the matter.
Thousands of people have made successful Plevin PPI claims, and you might be surprised to find you are one of them. Even those who knowingly bought a policy can claim because the commission was likely above the 50% threshold. Don’t miss your chance to find out and get a refund before it’s too late.