Plevin / Banking Litigation

Plevin / Secret Commission Case


JJL specialise in Plevin / Secret Commission Cases and for rejected Payment Protection Insurance cases.

What is Plevin?

A potential action may stem from the decision in Plevin v Paragon Personal Finance Limited [2014] UKSC 61 whereby section of 140A (1) of the Consumer Credit Act 1979 was applied to determine:

(a)  Whether the failure to disclose the amount of commission paid in respect of the PPI created an unfair relationship; and

(b)  Whether the broker’s alleged failure to adequately assess the suitability of the PPI for Mrs Plevin’s demands and needs was something done or omitted to be done “on behalf of” the lender for the purposes of s.140A(1)(c) of the Consumer Credit Act 1974 (the CCA).

In its unanimous decision the Supreme Court ruled that the non-disclosure of commission of 71.8% of the total PPI cost was unfair because it led to a sufficiently extreme inequality of knowledge and understanding. It was recognised that the tipping point for the creation of an Unfair Relationship was difficult to assess but 71.8% was way beyond it.

The Supreme Court also held that it was of critical importance that Mrs Plevin was aware of the size of the commission and the fact that she would have questioned it. This is an important evidential factor in any potential future case which is based on Plevin.

Next Steps

Contact us for us to review a potential action based on the Supreme Court ruling. 

Want to discuss Plevin?