Court case extends the time limit for making a PPI claim

You typically have six years after a loan has been repaid to make a PPI claim.

But a recent Court of Appeal judgment means you could have longer to claim if the lender pocketed an excessive commission that wasn’t made clear to you.

It’s being called PPI 2 and is not subject to the August 2019 mis-sold PPI deadline.

Here we run through the key case that means millions of people can now make new claims, and how you could be one of them.

Background to the court case

Mrs Potter took out a loan with Egg Banking (later became Canada Square Operations Ltd) for £16,953 in July 2006.*

A PPI premium of £3,834.24 was also taken out by Mrs Potter and was added to the loan. When combined with the interest rate, the insurance policy came to a total of £4,545.

Mrs Potter redeemed her loan early in March 2010.

Only later in 2018 did Mrs Potter discover that 95% of the premium was in fact the bank’s commission, and the insurer actually valued the policy at just £182.50.

In April 2018, after making a complaint to Canada Square saying she had been mis-sold her PPI policy, Mrs Potter was paid £3,160 as compensation. With the sum being below the total amont Mrs Potter had paid, she decided to take Canada Square to court for the balance. Mrs Potter claimed that the excessive commission that was left undisclosed by the bank created an ‘unfair relationship’ under section 140A of the Consumer Credit Act (CCA) 1974.

Since it was more than six years after Mrs Potter had repaid the loan, the bank attempted to argue that the claim was time-barred.

However, if the commission has been deliberately concealed, Section 32 of the Limitation Act 1980 extends the limitation period. Mrs Potter claimed that the commission had been deliberately concealed from her and she only became aware of it in 2018.

Mrs Potter won the case, and two appeals by Canada Square were dismissed.

Canada Square was ordered by the court to pay Mrs Potter £7,954 in compensation.

What this means for you

Although the August 2019 deadline for making claims has been and gone, you could still be eligible for a PPI payout even if six years has passed since you repaid your loan.

So, if you’ve ever taken out PPI on a loan and the lender failed to disclose their commission, you may be able to make a Plevin PPI claim.

Complete our FREE Plevin PPI checking service  or call us on 01902 954758 to find out if you could be owed compensation.

Here at Your Claim Matters, we offer a FREE Plevin PPI checking service where you’re able to find out if you were one of the millions of people affected by undisclosed commissions. You could be owed up to £40,000* in compensation. Where we identify that you may be able to make a Plevin PPI claim we will recommend you to one of our panel of law firms who will contact your lender to make a claim on your behalf. If your lender defends their position the law firm will look to issue Court proceedings against the lender on your behalf.

*The facts and figures provided come from reputable news websites and other sources:

https://www.express.co.uk/finance/personalfinance/1425411/PPInew-claim-payout-payment-protection- insurance-UK-2021

https://www.mirror.co.uk/money/millions-customers-can-now-make-23940044

https://www.thesun.co.uk/money/14681126/millions-of-customersnew-ppi-claims-bank-ruling/

https://www.dailyrecord.co.uk/lifestyle/money/new-ppi-claims-23942393?utm_source=twitter.com&utm_medium=social&utm_campaign=sharebar

https://www.fca.org.uk/ppi/ppi-explained

https://news.resolver.co.uk/are-we-facing-anew-wave-of-ppiclaims/

https://www.express.co.uk/life-style/life/914857/Martin-Lewis-moneysaving-expert-ppi-claim-plevin-rule-change

https://goughsq.co.uk/ca-judgment-in-potter-ppi-and-limitation/

You don’t need to use Your Claim Matters to check if you had Plevin PPI, you can contact the lender direct or you could use another claims management company. There is no charge to cancel the Plevin PPI checking service. Where we identify you may be able to make a Plevin PPI claim we will recommend you to one of our panel of law firms who will contact your lender. If your lender defends their position the law firm will look to issue Court proceedings against the lender on your behalf. You don’t have to use the law firm we recommend, you can use a law firm of your choice or you can approach the Financial Ombudsman Service for free advice or you can contact your lender. The law firm will charge a fee if your claim is successful. Typically customers pay up to 40% plus VAT (up to 48% in total) of the amount recovered although this may vary according to individual circumstances. The law firm should explain their fees in the documentation they share with you. We will receive an introducer fee from the law firm if you go ahead, this fee is not payable by you. Please click here to view the Terms and Conditions and Key Facts for further details.