PPI firm says to try going through court for a failed PPI

Shookup Posts: 37 Forumite
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edited 6 March 2021 at 12:20PM in Reclaim PPI & other insurance
My partner had submitted a PPI claim for his Lloyds and HBOS mortgages with Reclaim PPI (Simon Mayo) just before the deadline of August 2020 which failed.  However, they have just emailed him to say he may be due compensation if he pursued it through the courts and there is a firm (Cheval Legal Ltd) which they would like to refer his case to.  It would be no win, no fee but the amount of money they would take off him for their services and referring him to Cheval Legal cannot be confirmed blah, blah, blah. Cheval Legal specialise in the vetting of a particular type of PPI claim, known as “Unfair Relationship” or “Plevin” claims.   On the form you have to sign it says:

I/We hold/held a PPI policy(ies) with Lloyds. I/We were not informed by Lloyds that they would receive more than 50 % of my/our PPI premium as commission for selling me/us the PPI policy(ies) and I/we would not have taken the PPI policy(ies) had I/we known that the commission payment would be over 50%.

My partner went with a PPI claim firm mainly because he is not good with form filling etc and it is going back years and years, the first mortgage from the 90s (so paperwork can be hard for him to find).  So he just took what he thought would be the simple option of going with an online firm, knowing they would take their cut, but this was just going to be  online and not involving going to court.

He is now wondering if he should allow them to refer his case to a solicitor to go to court?  Do they really think he could win, or are they just sending this email out to all failed PPI cases?  If it failed first time round, why would a court see things any differently?  Maybe because of the Plevin case, they may now think he has a case?  However, he submitted his claim just before the PPI deadline, so surely they would also have checked for Plevin?

Then there are the potential hidden costs of going to court ... would he need to attend the court case?  If so there would be travel costs, time off work etc.  Would he be expected to visit the solicitor in person? Again this would involve costs and he doesn't know where they are.  Could the solicitor claim financial expenses off him if he is deemed to have waste their time and not attended meetings with them or provided them with suitable paperwork?

We will be asking Reclaim PPI and Cheval Legal for more information about the nature of a new claim in this way.  I don't know how far we will get in gaining more information, but we will try.  In the meantime, just wondering if anyone else has been contacted about a failed PPI claim in this way? What are people's feelings about this?  Is it best left well alone?  Or should he go for it?


  • sparelogin
    sparelogin Posts: 96 Forumite
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    edited 6 March 2021 at 12:16PM
    Definitely do NOT take it to court.

    The firm know that your partner is susceptible to bring ripped off and his details will be passed to other forms promising great rewards. They're just looking for further fees and for him to buy insurance policies for the doomed court case.

    Tell them not to contact him further. Don't encourage them by asking them for more information.
  • Shookup
    Shookup Posts: 37 Forumite
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    Oh thank you.  That is excellent, clear advice

  • dunstonh
    dunstonh Posts: 116,252 Forumite
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    All rejected complaints get assessed for Plevin.   So, when the complaint was rejected, they would have checked the commission and if over 50%, they would refund the excess.    No court action is required and no need to ask for it.  It is automatic.
     The rejection letter would confirm this.

    It should be noted that MPPI has the lowest commissions of any type of PPI.   It is quite normal for them to be under 50%.  

    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Shookup
    Shookup Posts: 37 Forumite
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    Thank you very much
  • The_squirrell
    The_squirrell Posts: 253 Forumite
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    edited 8 March 2021 at 12:42PM
    Cheval Legal are also a Dormant Company with net assets of £500. Their registered address is a mailbox. That's another reason for ignoring this, in addition to the excellent points above.
    I work in Data Protection and spend my days dealing with CMC's. Only here trying to help!!
  • Shookup
    Shookup Posts: 37 Forumite
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    That is terrible.  Thank you so much
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