Money Saving Expert founder Martin Lewis shares that UK’s biggest financial scandal is not exclusive for those mis-sold the insurance policy. Mr Lewis said the groundbreaking implications of Susan Plevin’s case involving high commission consumers owning PPI could use to reclaim their monthly payments.
The Susan Plevin case against Paragon Personal Finance had the UK Supreme Court rule in her favour. The Court ordered Paragon refund her for her invalid payment protection insurance due to “substantial commission” received by Plevin’s financial adviser. Mr Lewis said the amount for “substantial commission” is likely more than 50% of the financial adviser’s commission from the insurance product.
If the landmark case indicates the amount to be as high, PPI owners who were not mis-sold the insurance policy could make a PPI claim. However, the caveat still stands whether these claimants could receive their 10% PPI compensation — a matter that the City watchdog and the banking industry must clarify before applying the Plevin argument.
The UK Supreme Court, the Financial Conduct Authority and the banking industry must ensure the application of the Plevin argument before the end of 2017 to allow consumers to make a claim immediately before the appointed June 2019 deadline. So far, the payment protection insurance mis-seling scandal had earned more than £40bn in the last seven years.