The Plevin rule is a new regulation introduced in 2014, which states that if the commission paid to a financial institution on a PPI (Payment Protection Insurance) policy was over 50% of the total cost of the policy, the consumer has the right to claim compensation. This means that if you were sold PPI and the commission paid to the financial institution was more than half of the cost of the policy, you may be entitled to a refund.

Many people were mis-sold PPI, often without their knowledge or consent. PPI was intended to provide a safety net for policyholders in the event of accident, illness, or unemployment, but it was often sold to people who did not need or want it. Furthermore, the commission paid to financial institutions on PPI policies was often excessive, which means that many consumers may be eligible for compensation under the Plevin rule.

If you think you may have been mis-sold PPI, it is important to check your records and see if you have a policy. If you do, you should check the commission paid on the policy and see if it was over 50% of the total cost. If it was, you may be entitled to claim compensation.

*Pursuing a Plevin claim through the Financial Ombudsman Service (FOS) is no longer possible since February 2019 and must be done through litigation instead. While the FOS offers a free and potentially more accessible way to resolve disputes with financial institutions, litigation is a formal and expensive process that may result in higher compensation payouts.