Claims management companies have earned an estimated £2 billion by lodging PPI mis-selling claims on behalf of customers.
Claims Management Companies (CMC) are charging around 24% on average to tackle a mis-selling claim.
This means the average cost of using a CMC is in the region of £825.
The use of CMCs is controversial as the claims process is straightforward, and anyone who has been mis-sold, or suspects they have been mis-sold is able to seek redress without help from a third party firm.
Free PPI claims tool
Which? has created an online tool that guides victims of PPI mis-selling through the claims process.
The tool allows people to select the company that sold them the policy, fill in their contact details and answer some simple questions. It’s free, and can be found in the PPI claims guide.
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