Two Court cases have led to changes in the way customers can claim refunds on commissions paid on PPI policies. These are the now familiar Plevin case, and the less well-known Doran case.


The Plevin ruling

The ruling is named after Mrs Plevin who won her Claim against Paragon Personal Finance Ltd (Paragon) regarding undisclosed commission. These cases relate to accounts where premiums paid by a customer for a PPI policy included payment for commission which they were not aware of. In Mrs Plevin’s case, the percentage of her PPI policy premium that went towards commission was 71.8%. The Court ruled that the Lender had created an unfair relationship with Mrs Plevin and they were required to pay Compensation to her. As this case was resolved in the Supreme Court it set a legal precedent. Following this decision, the Financial Conduct Authority (FCA) ruled that any payments for commission over 50% of the cost of the PPI policy created an unfair relationship and, therefore, Lenders had to refund anything over this 50% tipping point (plus interest).



In the Doran case, Christopher and Joanne Doran also took their case against Paragon to Court, claiming they were unaware that 76% of the premium they paid for PPI was, in fact, commission to a broker. The Dorans argued that had they been aware of this they would not have taken out the policy. The judge ruled in their favour and the Lender was instructed to pay back the full amount of commission paid. This case was heard at County Court; it does not set a legal precedent and, as a result the FCA said that they would not revise their ‘tipping point’ of 50%.


How could these cases affect you?

Clients who wish to pursue Complaints regarding undisclosed commission charges can do so via the legal route. Such Claims are not affected by the PPI deadline. The Claims Guys Legal are a leading firm of solicitors in this new area of law. If you would like to see if The Claims Guys Legal can help you, please click here for further information. After an initial review, The Claims Guys Legal will submit a Letter of Claim to your Lender. If the Lender defends your Claim then The Claims Guys Legal will progress your Claim to Court. Over 99% of Claims are settled before going to Courti and the average value of successful Claims is £2,726.72ii. The Claims Guys Legal will keep you informed throughout the process.

  1. Calculated up to 7 January 2020
  2. Figure shown before Fee deducted, for all Claims between 1 December 2018 and 7 January 2020.