Following the High Court judgment on payment protection insurance (PPI) and the banks’ decision not to appeal, Which? is warning that claimants are likely to be targeted by claims management companies.
Don’t use claims companies
After a long court case the wait is nearly over for consumers who were mis-sold PPI, but the process of reclaiming can seem a daunting one. It needn’t be, but claims management companies are using this as an excuse to promote their services.
Claims management companies advertise themselves as being able to make the claim on your behalf, for which they take a fee. They often advertise themselves on a ‘no win no fee’ basis.
James Daley, editor of Which? Money, says: ‘People who think they’ve been mis-sold PPI should get in touch with their bank and complain directly. These claims management firms are just taking compensation out of people’s pockets. Banks should now be doing all the legwork, so there is absolutely no need to use claims management firms.’
Claim back yourself
Which? has developed a handy PPI tool to help you claim back. All you need to do is select the company who sold you the PPI, fill in your contact details and answer some questions about how you’ve been mis-sold.
Claiming directly to your bank is the first course of action, and the high court ruling ordered the banks to contact any customers who have been affected. If you’re not happy with the outcome you can also complain to the Financial Ombudsman Service (FOS).
The FOS has received over 200,000 complaints about mis-sold PPI policies since October 2010 and has upheld 3 in 4 cases in favour of the consumer.
Claims management companies
The Ministry of Justice which regulates claims management companies has shut down almost 500 such businesses since 2007.
A Which? investigation into claims management companies found only 10 out of the 38 we contacted offered good advice, and 16 claimed success rates of 90% or above with little or no evidence.
And you can have your say about PPI on the Which? Conversation site.
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