Susan and Keith Matthews

A couple from Essex have launched proceedings against two major high street banks after they were charged commission on their payment protection insurance (PPI), without being told.

Grandparents Susan and Keith Matthews took out a number of credit cards with Barclays and Lloyds over the course of 15 years.

They took out PPI at the time to protect themselves should they fall into financial difficulty; however, they were also charged a commission from both lenders when buying the policy.

The commission charged for both policies is estimated to be worth around 90% of the cost of the PPI.

Susan, 69, said: “At the time, we knew nothing about the commission being added on to the cost of our PPI and, after discovering how much this worth, I know that we would not have taken out the policy if we’d been aware.

“The PPI scandal itself showed banks to be profiting from mis-selling policies to people who were not eligible, but we now know that there was a further scandal taking place with the commission – it’s simply unfair and lenders should be held to account.”

As many as 64 million PPI policies were sold in the UK. Ahead of the August 2019 reclaim deadline, more than £33bn was reclaimed by people who were mis-sold insurance. Although the official deadline has now passed, new court rulings mean millions more people could still be entitled to make a fresh claim.

A Plevin claim is named because of a Mrs Plevin, who brought forward a claim after finding out that a staggering 71.8% of the cost of her PPI policy was a commission to her lender. In 2014, the Supreme Court deemed this as creating an ‘unfair relationship’ and, as such, Mrs Plevin won her PPI case.

If you have already made a PPI claim, and you were successful, then you cannot make a Plevin claim. However, legal experts recommend that you check whether you are eligible for a tax refund on the basis that the lender deducted tax before sending the money on to you.

If an individual has yet to make a PPI claim, or if the PPI claim was unsuccessful, then they could be eligible to make a Plevin claim. If they received a partial offer known as a ‘Tipping Point Offer’ then they may also be able to claim the rest of the commission.

Elaine Walker, head of financial mis-selling, at national law firm CEL Solicitors, said: “It is widely accepted that, as of last August, the deadline for PPI claims has passed. While this is true for the product itself, there is in fact another layer to the scandal surrounding PPI.

“As we know, PPI policies were created to protect consumers by helping them to make repayments on credit cards and loans, should they have fallen ill or lost their jobs. However, many people were mis-sold the product, in that they would never have been eligible to claim should they have needed to. For instance, if they were self-employed.

“But, on top of this initial mis-selling is the fact that lenders took a huge commission from the insurance broker, without telling the customer that they were doing so. Shockingly, this commission could be worth up to 100% of the cost of the original policy – it is a huge violation of trust between consumer and lender. Had people been made aware of just how much their lender was profiting in comparison to the price of the actual product, they’re likely to have thought twice before going ahead.

“There are potentially millions of people whose PPI claims were rejected, or who perhaps didn’t put one forward as they felt they benefitted from the peace of mind a PPI policy can offer. However, these are exactly the people who should now be taking steps to find out if they’re eligible for a Plevin claim. We’re already seeing a number of clients instructing us to press ahead with such claims, with momentum continuing to grow.

“The point to remember here is that the deadline for PPI claims passed a year ago – but if you had a PPI policy and were not aware of the commission your lender took at the time, you could still be eligible for compensation. CEL Solicitors offers free advice for anyone who feels they may have a claim, as we believe it’s essential that banks are held to account for what is yet another example of consumers being misinformed and mis-sold.”

Do you have a Plevin claim? Contact our team of experts today to find out how to progress, call us on 0808 273 0900 or request a call back.