Frequently Asked Questions

Susan Plevin is a retired college lecturer who took legal action against her lender, Paragon Personal Finance (“Paragon”), after she had PPI added to a loan she took in the sum of £34,000.

During her claim for mis-sold PPI, she also discovered that 71.8% of the PPI premium added to her loan with Paragon was, in fact, secret commission. It had nothing to do with the actual cost of the insurance. This was profiteering at the highest level. Susan Plevin argued that Paragon’s failure to disclose this remarkable commission meant she had been treated “unfairly” by Paragon and therefore it was appropriate for the Court to intervene on her behalf.

The Supreme Court ruled in Susan Plevin’s favour and ordered Paragon to pay compensation to her.

“Tipping Point” compensation

Following the Plevin case, the offending lenders still refused to properly compensate victims and instead of returning the correct amount of secret commission, paid back only a proportion of the sums rightly owed to the victims. We at The Law Mind believe firmly that the lenders’ conduct in relation to Plevin claims is wrong.

Indeed, another case involving Paragon came before the Court when Mr & Mrs Doran recovered the full PPI premium together with loan interest and additional compensation. Paragon was ordered to pay the Doran’s the sum of £17,345.37.

How can we help you?

We are in no doubt that our team can help you recover what is rightly yours, whether you never had any PPI refund or received some compensation.

You may be eligible to make an ‘unfair relationship’ claim if:

    • The lender confirmed that you had PPI associated with your borrowing, but the lender said the policy was not mis-sold.
    • The lender made a partial payment of the ‘secret’ commission taken from you.
    • You have never made a claim regarding your mis-sold PPI.

You cannot make an ‘unfair relationship’ claim if:

    • You have received a full PPI refund previously.

They are two of the significant legal cases. In 2006, Susan Plevin was sold a PPI policy to cover her secured loan from Paragon Personal Finance Ltd. She took a claim to the Supreme Court in November 2014, alleging that the contract and her relationship with Paragon was unfair due to:

  • The non-disclosure of the commission
  • The percentage of the PPI premium that was commission

The Supreme Court ruled that the failure by the lender to disclose to Susan Plevin the large commission paid out of her PPI premiums created an unfair relationship between her and the lender, and redress was awarded to Susan Plevin. Since then a second case has been won when the Court ordered the lenders to repay the full amount of the PPI premiums back to the claimants, this was called Doran v. Paragon.

Whilst a Plevin PPI claim is made in respect of the sale of a PPI policy, the basis of the claim and claims process are different to a mis-sold PPI Claim. Even if your PPI policy was not mis-sold, your Plevin PPI claim could be successful!

Historically, when lenders sold PPI they failed to disclose the commission they received. So, whilst consumers may have thought the premiums were for their cover, more than 50% of it was actually commission paid to the Lenders for the sale of the PPI policies.

A lender’s failure to disclose commission may have created an unfair relationship with the consumer, this is where The Law Mind can help.

If you have previously claimed for mis-selling and your lender accepted your claim, they would have offered you full redress. Lenders were required to put you in the position you would have been in if the PPI had not been sold to you. This means the commission has already been refunded and you cannot claim again based on Plevin.

If you have received an offer of compensation from your lender that does not amount to a full refund of the PPI premiums you have paid, you may be able to make a Plevin PPI claim.

Yes you can. If your lender did not tell you about the commission payments you can make a claim.

Your lender did not accept that PPI was mis-sold to you but accepted you were not told that commission payments were being made. That so, the lender returned some of the commission to you but not the full amount. There is generally NO justification for such behaviour. You should have got back at least all of the commission and we will seek to recover 100% of the PPI premium, plus any loan/credit card interest on the premium and some compensatory interest in addition.

I thought that the time for making a PPI claim ended in August 2019.

A Plevin type claim is based on a statutory right under the Consumer Credit Act 1974. It is a claim before the Court. The rules published by the FCA for complaints do not apply. You are entitled to make the claim to the Court past the above deadline. Your rights are unaffected by the PPI deadline.

Making a Plevin type PPI claim involves proceedings before the Court. You can act for yourself in the legal process particularly if your claim is of a small value. However, in our experience these claims are not straightforward and involve highly technical legal arguments.

It seems clear to us that you should have support from qualified litigators (whether ours or others). You are free to seek advice as you see appropriate and instructing a solicitor is always your choice.

Many consumers who were persuaded to take payment protection insurance (PPI) with their finance were misled about the true nature of the insurance premium. Consumers were not told that a large proportion of the insurance premium was, in fact, commission paid to the brokers and lenders for their profits. This meant consumers not only paid for the secret commission but also paid interest on the finance relating to those sums.

This was scandalous and the largest breach of consumer trust by financial institutions in recent memory.

Think this was unfair? So did the highest court in the land, the Supreme Court, in its much-celebrated judgment in the case of Plevin v. Paragon.

The Law Mind is trading style of Courmacs LLP a company registered in England and Wales with registration number OC388078. Registered Office: 13 Crofts Bank Rd, Urmston, Manchester, M41 0TZ. Authorised and regulated by the Solicitors Regulation Authority (Number 608157) and subject to the Solicitors Code of Conduct at www.sra.org.uk/solicitors/code-of-conduct. Details of Directors are available at our registered office.

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