When I first heard about the PPI scandal, I assumed it was about being pressured into buying insurance.
That didn’t happen to me.
I wasn’t forced. I signed the agreement. I accepted the policy. And when my complaint was rejected years ago, I thought that was the end of it.
What I didn’t know was that the real issue might not have been how the policy was sold, but how much of it went to the lender.
By 2019, banks had paid out more than £38 billion for mis-sold PPI. A deadline was introduced for traditional claims, and many of us believed the whole story was over.
It wasn’t.
The Part Nobody Explained
In the Supreme Court case of Plevin v Paragon Personal Finance Ltd, it was revealed that over 70% of the premium paid by Mrs Plevin went to the lender as commission .
She was never told.
The Court decided that this level of non-disclosure could create an unfair relationship under section 140A of the Consumer Credit Act 1974 .
That changed everything.
Because suddenly, the question wasn’t just:
Was the policy suitable?
It became:
Was it fair for the lender to take more than half of the premium without telling the customer?
Why This Matters If You Were Rejected
Most early PPI complaints were assessed only on mis-selling grounds . Banks looked at whether you were pressured or misled about the policy.
They rarely looked at commission.
If your rejection letter said there was “no evidence of mis-selling,” it may never have considered whether the commission exceeded 50% or whether that commission was disclosed .
That is a different legal route.
And importantly, commission-based Plevin claims are not governed by the same 2019 deadline as traditional mis-selling complaints .
The Realisation
For many people, the shock is not that commission existed. It’s that it was so high.
You might have paid thousands in premiums, unaware that more than half could have been quietly retained by the lender .
The policy may have looked normal. The paperwork may have seemed routine. But the financial relationship behind it may not have been transparent.
That is the overlooked side of PPI.
If You’re Unsure
If you had a PPI claim rejected in the past, or received only a partial refund, it may be worth checking whether commission was ever assessed properly.
You can read our full breakdown here:
Standard PPI vs Plevin Claims: What You Need to Know in 2025
It explains the difference clearly and helps you understand whether a hidden commission issue could still apply to you.