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According to the new rule, banks are liable to pay almost thousands of pounds in compensation to people that are reclaiming PPI. This means that people are now able to claim back some amount of money just for having had a PPI policy under their name.

Banks now have to consider the court ruling, which is famously known as the ‘Plevin’ rule when they are dealing with PPI reclaims. This means that people can now claim for PPI compensation if their lender or bank is said to have earned a high level of commission from the mis-sold PPI and this was not made clear to the consumers.

There were various success stories that surfaced claiming that people have won huge compensations under the Plevin clause. The amount of compensation is often over £1000 even if the claimant had previously been rejected the PPI claim.

What exactly is the ‘Plevin’ rule?

This rule gets its name from a famous 2014 court case brought by Susan Plevin. The judgement declared that she was treated unfairly and was left uninformed regarding the huge amount of commission taken from her PPI payment (which was about 71 per cent).

Thus, under the famous Plevin rule, if more than 50 per cent of consumer’s PPI’s costs are gone as commission to the lender or the bank and this was not explained to the consumer, the consumer is due the extra plus the interest.

The average commission banks were paid was 67%, which in other words mean that millions more people sold PPI are now entitled to compensation. People are said to be unaware of the amount as most banks did not disclose it. However, to qualify for this rule, your PPI policy and any connected loan is supposed to be active in or around the month of April 2008 or after.

Some success stories under the Plevin rule

Banks have started to consider the Plevin claims from the past eight weeks. However, success stories of the claimants have already started to surface and it has led to the possibility that there might a lot of more such cases.

One such victim, Alison Baker is said to have received a total amount of £1175, is among the first few successful claimants under the Plevin ruling.

Alison and her husband David had previously submitted two PPI claims in 2011 – one for a Capital One credit card and one for a Nationwide mortgage. Both claims were unsuccessful, despite Alison taking her case all the way to the ombudsman.

But after being made aware of the Plevin rule, Alison made a claim for both the products in mid-September and received a cheque from Capital One within two weeks.

Apart from Alison, there were many successful claimants that received their rightful compensation amount because of the Plevin rule.

  • Grahame Burt, a 60 year old man received £1375 after previously having two of his PPI claims rejected.
  • 27 year old Tom Dipple, received a compensation amount of £320 just for having a PPI policy held under his name.
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