Plevin is a term that you will hear an awful lot about over the next few months and years as the PPI (Payment Protection Insurance) saga draws to a close.
Plevin is a court case “Plevin v Paragon” that had been dragging on for several years. In that case, Mrs Plevin, had successfully recovered her PPI. However, she then discovered that not only was she charged PPI by the firm Paragon, but they had also, unbeknown to her, paid a third party a commission from the premium she had paid to them.
The Financial Conduct Authority (FCA) department considered regulations under Plevin and are looking at addressing this issue. Under the Consumer Credit Act, the client must have full knowledge of all payments that are to be paid to third parties in respect of commission pay-outs.
Therefore, as a quick precis of the Plevin case the client, Mrs Plevin, had already recovered her PPI and the Court then ruled that she could also recover the commission payment (this is on top of the PPI) so, in effect, a double-whammy effect for the client.
The Court’s decision at the end of 2014 will mean, following consultation with the FCA concerning the Plevin case, that anyone who has a hidden commission (and quite frankly no-one knows if they had hidden commission) who has yet to either claim PPI, or has claimed PPI in the past, can now establish if commission was paid out to a third party. If it was then they can then look at recovering all, if not a large proportion of this.
Many people do not hold paperwork for making a claim regarding their PPI to begin with, as they do not usually have documentation or do not have any information due to the period of time that has passed. They therefore do not know whether they had PPI or whether they ever had this commission in the first place.
We are therefore taking on clients at a growing rate again as PPI draws to a close, towards the end of 2019, to look at this hidden commission for clients and recover it for them on their behalf – all on a no win no fee basis.