The recent test case in relation to Plevin v Paragon Personal Finance Ltd will affect a large proportion of Payment Protection Insurance (PPI) claims in that you will not only be able to recover the PPI Premium but you will also be able to recover a further proportion of monies, that being the difference between the Commission (if any was paid) to a third party.
The Plevin case was taken against Paragon by a client who had already recovered the Premium in relation to the mis-sale of the Payment Protection Insurance. However, Mrs Plevin was not aware that a Commission was paid to a third party, which made up 73% of the Premium taken by way of the Payment Protection Insurance. The argument was that had she known this was to be paid, she would have queried this at the time and the Payment Protection Insurance itself would not have been taken. Therefore, the Court ruled that due to the excessive nature of the Commission that was paid, that Paragon were in breach of the Consumer Credit Act in the unfair way that they conducted their business with the client, and they therefore had to make recompense to the client.
Since then the Financial Conduct Authority (FCA) has investigated the Supreme Court Ruling and the effect that it has under s140A Consumer Credit Act 1974. They have suggested that the way that Lenders should look at recompensing clients (regardless of whether a PPI claim has taken place or not) is to look at this as a separate issue and if a complaint is made, refund the difference between 50% Commission, and the amount actually paid. The Industry average is approximately 67% – hence there could potentially be further windfalls (although slightly smaller than the original PPI payout) to be recovered for individuals by way of a claim. The FCA fell short of suggesting that all firms should review any PPI sales with regard to any Commissions that have been paid, but it does leave the door firmly open for claims to be made.
If you have made a claim against PPI in the past and have been successful, we can now look at the further proportion of claim, which including interest and accumulated refund costs, could mean refunds of approximately 30% to 40% of the original PPI claims that have been refunded in the past.
The PPI saga has now been rumbling on for a number of years. It is due to draw to a close in Spring 2018 when this new line of claims will also be stopped. Therefore it is essential if you have not already made a claim in relation to PPI, that you do so without fail. There is no need to produce any paperwork confirming PPI was applied or any details of loans or credit card facilities that you have had in the past.
We have been able to secure large refunds for clients for claims as far back as 1987 without any paperwork or information, but just by contacting the Lender. With our experience, we are able to establish whether Payment Protection Insurance has been mis-sold, and if it has been, to look at obtaining a full refund constituting Premiums paid as well as associated interest at the prevailing rate of whatever facility we are considering at the time. In addition, we can now look at the “Plevin” affected cases and whether Payment Protection Insurance has been refunded in the past (or not) as well. All of this is catered for under our “No Win No Fee” agreement whereby, if there is no refund, there is no fee to pay.