A Plevin Claim is centered around hidden commission, essentially a Plevin claim is a claim for the commissions charged on the PPI premiums that many people took out.
In 2014 the Supreme Court ruled in favour of a Mrs Plevin, who was sold a PPI policy to cover her secured Loan from Paragon Personal Finance Ltd. Mrs Plevin became aware that a huge 71.8% of the premiums she had paid under her PPI policy were actually a commission payment to her Lender and she alleged that this was unfair.
The Supreme Court agreed with Mrs Plevin and stated that the relationship was completely unfair because of the following reasons:
The regulator’s new Plevin rule says if over 50% of your PPI’s cost went as commission to the lender, and that wasn’t explained to you, you’re due back the extra above that.
Hidden PPI commissions will have occurred when an agent, introducer, or financial advisor sold you a PPI agreement from a bank or lender. If the agent or broker received a fee or commission for bringing you to the bank, and the bank did not inform you of this, that is an undisclosed commission. The lender or bank should have informed you of ALL of the fees within the PPI transaction.
A general statement that “a commission may be paid in certain circumstances” is not adequate enough either. They have to inform you at the point of sale how much the commission was. If they failed to do so it is a form of fraud. Both the bank and the financial advisor may be liable for potential claims.