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    • Cchrister
    • By Cchrister 16th Sep 17, 10:47 AM
    • 4Posts
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    Cchrister
    Plevin Claim to Paymentshield
    • #1
    • 16th Sep 17, 10:47 AM
    Plevin Claim to Paymentshield 16th Sep 17 at 10:47 AM
    Hi,
    I'd really appreciate any help and advice as to what to do next with this.

    We have had PPI on a mortgage through paymentshield and have never claimed for this back as it would be highly unlikely we would get it BUT I heard about Plevin so have recently tried to claim for this.

    I have just received back a final response from paymentshield and they say they can confirm they are administering my complaint on behalf of Hamilton Insurance Company Limited, c/o Aviva Insurance Limited (which was news to me) they then go on to say that Plevin judgement concerned to relationship with the lender and borrower as described in s. 140 of the consumer credit act, therefore as they are not the lender they cannot agree that an unfair relationship existed and my complaint should be directed towards the lender.???

    Now I am not sure what I should do next, they included in the letter the ombudsman leaflet so do I just try to escalate this to them or do I have to try and somehow claim to Hamilton Insurance c/o Aviva even though all the policy numbers and details I have are with Paymentshield??

    Any advice would be appreciated
    Thanks in advance
Page 1
    • Brokerwise
    • By Brokerwise 16th Sep 17, 10:57 AM
    • 165 Posts
    • 74 Thanks
    Brokerwise
    • #2
    • 16th Sep 17, 10:57 AM
    • #2
    • 16th Sep 17, 10:57 AM
    That is correct, Plevin has nothing to do with your situation. What are your reasons for trying to reclaim the mortgage protection?
    • Cchrister
    • By Cchrister 16th Sep 17, 11:03 AM
    • 4 Posts
    • 0 Thanks
    Cchrister
    • #3
    • 16th Sep 17, 11:03 AM
    • #3
    • 16th Sep 17, 11:03 AM
    I am not trying to reclaim the mortgage protection and how does Plevin not have anything to do with my situation?

    I was assuming plevin concerned all PPI policies?

    Please explain
    Thanks in advance
    • dunstonh
    • By dunstonh 16th Sep 17, 11:06 AM
    • 89,548 Posts
    • 55,997 Thanks
    dunstonh
    • #4
    • 16th Sep 17, 11:06 AM
    • #4
    • 16th Sep 17, 11:06 AM
    Any advice would be appreciated
    You give up. There are two issues that end it for you. Possibly 3.

    1 - Paymentshield only retailed their insurances via advisers and mortgage brokers. They only did monthly premium PPI (which is how PPI should be set up). It was standalone from any borrowing.

    Plevin does not apply to Paymentshield themselves. Which is why they have responded as such. From their position, they cannot categorically say there was no relationship with the seller and the lender. So, they are referring you to the lender. In real life, they know there is no relationship to the lender but they cant say that.

    If you were to go to the lender, they would say they have no record of any policy being put in place with paymentshield and it is not a product that they sold. So, there was no unfair relationship. The lender and the insurance were from two different companies with no link with each other. Neither company knew who the other was.

    2 - Paymentshield commission is way below the 50% tipping point. So, even if there was a relationship, it doesn't get above the tipping point that requires the excess to be repaid.

    3 - The only one of the 3 that may apply.... mortgages are only covered under plevin if the sale of the insurance took place before October 2004.

    Bottom line. Plevin is not an issue here. So, no point continuing. Plevin was not about this type of plan and distribution. Indeed, consideration was given to excluding it in the FCA consultation. However, they decided not to have an exclusion as theoretically, it could apply. They just said firms should reject it if they are contacted about it.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • antrobus
    • By antrobus 16th Sep 17, 11:13 AM
    • 15,275 Posts
    • 21,789 Thanks
    antrobus
    • #5
    • 16th Sep 17, 11:13 AM
    • #5
    • 16th Sep 17, 11:13 AM
    ...I was assuming plevin concerned all PPI policies?
    Originally posted by Cchrister
    No, it only applies to PPI with 'high levels' of commission - in excess of 50% - and the failure to disclose that commission.

    Is there any reason why you think that applies to you?
    • Cchrister
    • By Cchrister 16th Sep 17, 11:16 AM
    • 4 Posts
    • 0 Thanks
    Cchrister
    • #6
    • 16th Sep 17, 11:16 AM
    • #6
    • 16th Sep 17, 11:16 AM
    Thanks for your thorough response I really appreciate that dunstonh.

    I think I'll just give up as you say.
    Thanks anyway
    • Cchrister
    • By Cchrister 16th Sep 17, 11:18 AM
    • 4 Posts
    • 0 Thanks
    Cchrister
    • #7
    • 16th Sep 17, 11:18 AM
    • #7
    • 16th Sep 17, 11:18 AM
    Yes we were not told of the high commission and if the commission was not disclosed how do you know what level it was at? You have to at least try these things don't you?

    Not going to do anything more with it now anyway
    • dunstonh
    • By dunstonh 16th Sep 17, 11:38 AM
    • 89,548 Posts
    • 55,997 Thanks
    dunstonh
    • #8
    • 16th Sep 17, 11:38 AM
    • #8
    • 16th Sep 17, 11:38 AM
    Plevin is mainly aimed at the single premium PPI sold and built into loans. Some of these had disgracefully high levels of commission.

    As it stands, it is expected that most single premium PPI has commission far in excess of the tipping point. Credit card PPI commission tends to be around the tipping point with some just under and some just over. We have only seen one credit card PPI plevin outcome and that was under 50% (its was in the high 30s).

    Regular premium PPI, such as MPPI is expected to be mostly under the tipping point (mostly around 20-35% is the typical commission range on MPPI - banks usually taking more than the whole of market options). Plevin is not expected to affect PPI put in place by mortgage advisers/brokers, estate agents or FAs/IFAs. (a very small number of single premium MPPI sales were made - these are nearly always upheld in a complaint. So, plevin would not apply to those)
    Last edited by dunstonh; 16-09-2017 at 11:40 AM.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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