What the Doran Decision Means For Your PPI Pay-out…

A while back, we stated that Court Rulings Could Mean Banks Paying Out a Further £30b on PPI Claims… and the Doran Decision is the reason why.

The original Plevin case ruled for lenders to pay-out based on unfair commission levels if the agreement was covered by s.140a of the Consumer Credit Act 1974. Subsequently, this caused the FCA (Financial Conduct Authority) to introduce a new tipping point of 50%. Thus, meaning that if the commission level was above 50% the lenders should reimburse the remainder.

The average commission rate being is around 67%. So, if you have received what is called a ‘partial uphold’ by banks, you may actually have only received a small percentage of what you’re really owed.

This is because of the Doran Decision. Joanne and Christopher Doran challenged Paragon Personal Finance in Manchester County Court back in 2018, and received a verdict which would change the landscape of commission-based PPI claims.

The couple claimed that had they been aware of the high commission rate (76% in this case), then they would not have gone forward with the policy. The judge agreed with the Doran’s stating:

Without disclosure of the level of commission, the person in the position of the Claimants has simply no way of knowing that most of the money which they think they are paying to obtain the benefit of a PPI policy is in fact going to the lender.”

District Judge Pearson ruled that Paragon should reimburse the full commission amount of 76% plus interest, despite the FCA’s guidelines. This amount totalled £17,345.

What this means for you

So, if you’ve had a PPI mis-sale rejected then we may be able to have these claims re-considered on a commission-based basis. The PPI deadline of 29th August 2019 does not apply here as this does not classify as a new PPI claim.

Furthermore, as stated earlier, if you’ve received a partial uphold of the amount over 50% then you may be owed a lot more. We can begin litigation on your behalf and use the Doran case as a precedent for you to receive the entire commission amount back. Simply fill out our Plevin Form. All we need is an e-signature and we’ll begin working on your case. Always on a no win, no fee basis.