What is the Impact of the Plevin Ruling for PPI claimants?
The regulator is cutting off PPI reclaims, so if you have or ever had a loan, mortgage, credit or store card, overdraft or a catalogue debt, take note. Even if your claims have been rejected, you can reclaim.
Here are the 5 things you must know about PPI reclaim:
1. Now just having had PPI means you were mis-sold
2. Deadline is 2019, but act ASAP to beat the queue
3. Don't assume 'it's not me' - even if you have said no to it.
4. You can use our free online tool to check PPI.
5. A typical payout is around £3,000 and therefore it is worth your time.
Now, just having PPI means that you were likely mis-sold the policy by your bank or lender. Within the deadline announcement, a new mis-selling category called 'Plevin' was confirmed. It comes into effect by 29 August this year.
This Plevin ruling means if over 50% of your PPI policy’s cost went as commission to the lender without your consent, you are due back the extra above that. For this to count, your PPI has to have still been active at some point since 2008.
Staggeringly, with a PPI policy attached with a loan, on an average 67% of what you paid was pocketed by banks as commission from insurers, and banks almost never mentioned it in their papers. So, millions more people are owed possibly billions of pounds in compensation.
On a £10,000 loan over five years, your 'Plevin' compensation would typically be around £500 (if you're due all the PPI back for other mis-selling, you don't get both).
Lenders are forced to write about Plevin to 1.2 million people who've had their claims rejected in the past. Yet if you've never complained, but are owed, bizarrely you won't be told and you need to take it up.
The Key Steps to Reclaiming PPI
There’s no time limit on PPI reclaiming - you can go back as long as you like, as long as you’ve evidence.
Check all old loans, credit cards, mortgages, store cards and overdrafts to see if there was PPI policy attached with any of them. It will have been called something like accident or sickness cover" or "payment insurance".
Check if you were mis-sold. Typical examples of mis-selling include if you were told that PPI was compulsory or that it'd cut your loan costs - sometimes it was added without asking, or even after you'd said no. They had a duty to ensure it was suitable for you. It may not have been if, for instance, you were self-employed but got unemployment cover.
Make a claim yourself with FOS (Financial Ombudsman Service) or take help of a claim management company.