If you have had a secured loan with Paragon Personal Finance, then there is a considerable chance that you may have been mis-sold PPI.
Paragon, was very much, one the main lenders of choice for secured loan brokers before the credit crunch hit the industry hard in 2008. If you took second charge borrowing through a broker like Freedom Finance, Promise or Picture just to name a few of the better known ones, then you may have been mis-sold PPI.
Typically targeting those with bad credit and multiple personal debts, secured loan brokers were famous in the early 2000’s, for dominating television advertising on morning TV. It was a big money game. Although secured borrowing for home owners, made servicing debt more affordable, the cost of getting down to one monthly payment was scary stuff.
Secured loan brokers preyed on the vulnerable. High interest rates, huge broker fees and then a big PPI hit in too. Draw down the new loan and instantly your debt had just gone through the roof. Invariably, the PPI only ever covered the first five years of the borrowing and if you repaid the loan within that timescale, the return of premium on your PPI policy, was often virtually non-existent due to the huge opening commission.
Some Paragon secured loan cases, have even seen a near 90% commission being paid on a PPI premium. Perhaps the most famous Paragon case, has now become known as the “Plevin” case. Mrs Plevin, a widowed university lecturer took a secured loan out in 2006. The broker was LLP Processing (UK) Ltd.
In a judgment laid down by the Supreme Court in November 2014, the commission on the PPI element of the borrowing was declared to be an unfair contract under the terms of the Consumer Credit Act – Sections 140 A-D. The commission generated on a PPI Premium of £5,780, on a loan of £34,000, came in at a whopping 71.80%. Or put another way a nice little earner for the broker of £1,870 and an even chunkier amount of £2,280 for Paragon.
Reclaiming for mis-sold PPI on secured loans is often difficult, as the brokers providing the advice may no longer be trading. At Beat the Banks, our team has hundreds of years of banking, insurance and legal experience, designed to recover PPI mis-sold on secured loans where Paragon was the lender.
Some Paragon secured loan cases, have even seen a near 90% commission being paid on a PPI premium.
Misleading The Vulnerable
Typically targeting those with bad credit and multiple personal debts, secured loan brokers were famous in the early 2000’s
Time is running out to make a claim against Paragon for mis-sold PPI, the time to act is now.